Home Depot, the world's largest home improvement retail chain, has agreed to amend its corporate bylaws in response to a shareholder proposal submitted by Professor Lucian Bebchuk.
According to Bebchuk, the proposal's aim was to ensure that the company does not provide a CEO pay package without widespread support from the its independent directors.
"I am pleased that Home Depot agreed to adopt the arrangement I proposed, and I hope that the arrangement will result in improved decision-making with respect to CEO compensation," said Bebchuk after discussions with Home Depot. He has submitted similar bylaw proposals to AIG, Bristol Myers, and Exxon.
Earlier this month, Home Depot CEO Richard Nardelli resigned and received more than $200 million in a severance and retirement package.
Lucian Bebchuk is director of the Program on Corporate Governance and co-author of Pay without Performance: the Unfulfilled Promise of Executive Compensation. More information about his proposals is available from the policy page of his website.