Home Depot tries openness

ATLANTA -- For two hours, Home Depot executives did not utter his name.

But it was no use. Bob Nardelli loomed large over this year's annual shareholder meeting Thursday, as the company's directors and executives struggled with, and at times appeared to clash over, the legacy of Nardelli, the ousted former chief executive.

At first, it seemed everyone was on the same page. The new chief executive, Frank Blake, took the stage and apologized for last year's infamous annual meeting, when Nardelli refused to take questions from investors, and members of the company's board stayed home, at their leader's urging.

"There is no better way to deal with a mistake than to acknowledge it, fix it and move forward," Blake said. "We apologize for last year's meeting. It was a mistake, and we won't do it again."

But in an interview minutes before the meeting, the company's lead director, Kenneth G. Langone, strongly defended Nardelli's leadership and pay, both of which came under withering criticism before the board asked him to step down in January.

"We needed the best. We got the best. Bob saved Home Depot," Langone said.

He said Nardelli was worth "the full value" of his pay, roughly $270 million over six years. "I am never going to back away from it."

So it went, back and forth, during a day of discussions about the future of the giant home improvement retailer that returned repeatedly to the past -- back to the company's two major founders, who were both present for the first time in years, to show support for Blake.

Blake tried hard to distance the proceedings from last year's session, which was viewed as a botched effort to muzzle angry shareholders. Last year, for example, Nardelli employed large digital timers that cut off speakers after one minute.

The theme of this year's shareholder day was "openness." Blake tried to show that he meant it, fielding long-winded, critical questions and discussing Home Depot's business problems.

Since Nardelli did none of those things last year -- he concluded the gathering after 37 minutes -- investors said the bar for transparency had been set rather low. Still, several applauded the new tone from the top, repeatedly praising Blake's humble style and willingness to acknowledge mistakes.