Nardelli A $1 a year man?

Posted by: David Kiley on August 7, 2007

The Financial Times is reporting that Robert Nardelli, the new chairman/CEO of Chrysler, ill draw a $1 per year salary from the automaker’s owner Cerberus Capital.

If true, that’s a far cry from the money the poster-boy for excessive exec pay made at Home Depot. It could well be true. Nardelli didn’t answer questions about his salary at Monday’s press conference. But it would be in keeping with these private-equity deals to offer Nardelli a piece of the company if he is successful in fixing it. Note: Bill Ford also takes $1 a year in salary, with the rest being performance pay.

If Nardelli really wants to rehab his image, so tarnished at his exit at Home Depot, he will not only fix Chrysler, but also address his pay issues at Home Depot on the record and forthrightly as being an example of what’s wrong with corporate America and exec pay. But since his one-time mentor Jack Welch is a dogged defender of out-sized pay and retirement packages, I’m not holding my breath.

Reader Comments

Alejandra

August 8, 2007 4:24 PM

Indeed, Nardelli may not be preparing the company for the next 100 years. Rather, he may be poised to turn it around in the next couple of years.
Could there be a long-term fix though? Is there a final objective Nardelli and others are contemplating?
A colleague of mine at TopRight just commented on this at http://cornerthemarket.net/?p=45.

...There may indeed be another route this car is heading.

Bryan Karlan

August 10, 2007 11:22 AM

If Nardelli rescues Chrysler and allows tens of thousands to keep their jobs, then he earned whatever pay that he gets. If someone else could do it for less, they'd of hired that guy. I hate these liberal ideas that somehow his pay was outsized at Home Depot. Yes he made a ton of money, yet he also doubled sales. He may have left with some problems at Home Depot, but he was forced out before his job was done. He may have pissed some people off, but tough, he's the boss and unless there is someone else that can do the job that he does, better than or as well as. Then pat him on the back for a job well done and let him make whatever money he can make. This is a capitalistic society. I say, good on him. Have you made $200,000,000 lately? Then stop whining when someone else does.

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