On August 5, 2007, he turned chairman and CEO of Chrysler, which had just lately been taken personal by personal fairness agency, Cerberus Capital Management. His annual wage at Chrysler was $1, with different compensation not publicly disclosed. (It’s rumored that the phrases have been that he would not be paid except Chrysler succeeded. If they did succeed, he can be paid a wage alongside the strains of $30 million.)
While CEO of Home Depot, Nardelli was additionally briefly on the board of administrators for Coca-Cola, beginning in 2001.
During his tenure at The Home Depot, Nardelli met President George W. Bush on the White House in 2002 and was appointed to Bush’s Council on Service and Civic Participation (though he’s now not a member). Nardelli additionally hosted a backyard reception/fundraiser for Bush at his Atlanta house on May 20, 2004.
Nardelli was credited with doubling the gross sales of the chain and bettering its aggressive place. Revenue elevated from $45.74 billion in 2000 to $81.51 billion in 2005, whereas net earnings after tax rose from $2.58 billion to $5.84 billion. During Nardelli’s tenure, The Home Depot inventory was basically regular whereas competitor Lowe’s inventory doubled, which alongside together with his $240 million compensation ultimately earned the ire of buyers. His blunt, important and autocratic administration model turned off workers and the general public. Nardelli was notably criticized for slicing again on educated full-time workers with expertise within the trades and changing them with part-time assist with little related expertise. This transfer diminished prices, however harm customer support at a time when Lowe’s was making inroads nationwide. While the board strongly stood by him for many of his tenure, questions on his management mounted in 2006, and in an ominous portent of the close to future, he was the one director current on the annual assembly. At that assembly, he solely allowed shareholders to talk for one minute every. Nardelli and the board reached a mutual settlement for Nardelli to resign on January 3, 2007; his severance bundle was estimated at $210 million. He was succeeded by The Home Depot vice chairman and govt vice chairman, Frank Blake. Blake had served as Nardelli’s deputy at each GE Power Systems and Home Depot.
Nardelli turned CEO of The Home Depot in December 2000 regardless of having no retail expertise. Using the Six Sigma administration technique used at GE, he dramatically overhauled the corporate and changed its entrepreneurial tradition of revolutionary product design with one targeted on relentless cost-cutting. He modified the decentralized administration construction by eliminating and consolidating division executives. He additionally put in processes and streamlined operations, most notably implementing a computerized automated stock system and centralizing provide orders on the headquarters.
By 1995, he had risen to president and CEO of GE Power Systems, additionally having the title of GE senior vice chairman. Nardelli was usually often called “Little Jack”, after his mentor Jack Welch, whom Nardelli had ambitions to succeed as CEO of GE. When Jack Welch retired as chairman and CEO of GE, a prolonged and well-publicized succession planning saga ensued. Nardelli competed with James McNerney and Jeffrey R. Immelt to succeed Welch. With Immelt successful the three-way race, Nardelli and McNerney left GE (as was Welch’s plan). About 10 minutes after Welch let him go, Nardelli acquired a job supply from Kenneth Langone, who on the time was on the boards of each GE and The Home Depot.
He joined General Electric in 1971 as an entry-level manufacturing engineer. From 1988 to 1991, Nardelli was an govt for a division of the development gear maker, J. I. Case Company, which was then a part of Tenneco.
Born in Old Forge, Lackawanna County, Pennsylvania, Nardelli attended Rockford Auburn High School in Rockford, Illinois and acquired his Bachelor of Science in enterprise from Western Illinois University in Macomb, the place he was a member of the Tau Kappa Epsilon fraternity. Nardelli additionally earned an MBA from the University of Louisville. He is married to Susan L. Schmulbach with 4 youngsters and attends Roman Catholic church.
Robert Louis Nardelli (born May 17, 1948) is an American businessman, was the previous chairman and chief govt officer of Chrysler from August 2007 to April 2009, the previous CEO of Freedom Group from September 2010 to March 2012, and had earlier served in an analogous capability at The Home Depot from December 2000 to January 2007. Prior to that, Nardelli had risen to change into one of many prime 4 executives at General Electric. In 2009, Condé Nast Portfolio named Nardelli as one of many “Worst American CEOs of All Time”.