Subject category:
Human Resource Management / Organisational Behaviour
Published by:
Harvard Business Publishing
Version: 18 December 2007
Length: 20 pages
Data source: Field research
Share a link:
https://casecent.re/p/74920
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Describes the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO): Office of Investment''s activities in their campaign to improve governance at Home Depot by calling attention to Home Depot Chief Executive Officer (CEO) Robert Nardelli''s compensation package and the company''s poor performance. The AFL-CIO Office of Investigation advocates for improved corporate governance at public companies, focusing on the problems of excessive chief executive compensation, improperly backdated stock options, insufficiently independent corporate board members, poor responsiveness to shareholders concerns, and a lack of transparency in the activities and decisions of boards. The AFL-CIO believes that such problems were indicators of underlying problems in corporate governance that could impact the long-term value of a public company. To advance its cause, the Office targeted Home Depot. In an effort to bring about change at the company, the AFL-CIO and AFSCME (American Federation of State, County & Municipal Employees) corresponded with Home Depot executives, staged public protests, appeared on talk shows, and maintained several websites. The trillion-dollar size of the union pension funds gave the Office a platform from which to work. The departure of Home Depot''s CEO had been a significant step by Home Depot and the company had made other concessions as well. The AFL-CIO Office of Investment now needed to decide whether to continue to use its limited resources focusing on Home Depot or find a new target to forward their cause.
Other setting(s):
2006-2007
About
Abstract
Describes the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO): Office of Investment''s activities in their campaign to improve governance at Home Depot by calling attention to Home Depot Chief Executive Officer (CEO) Robert Nardelli''s compensation package and the company''s poor performance. The AFL-CIO Office of Investigation advocates for improved corporate governance at public companies, focusing on the problems of excessive chief executive compensation, improperly backdated stock options, insufficiently independent corporate board members, poor responsiveness to shareholders concerns, and a lack of transparency in the activities and decisions of boards. The AFL-CIO believes that such problems were indicators of underlying problems in corporate governance that could impact the long-term value of a public company. To advance its cause, the Office targeted Home Depot. In an effort to bring about change at the company, the AFL-CIO and AFSCME (American Federation of State, County & Municipal Employees) corresponded with Home Depot executives, staged public protests, appeared on talk shows, and maintained several websites. The trillion-dollar size of the union pension funds gave the Office a platform from which to work. The departure of Home Depot''s CEO had been a significant step by Home Depot and the company had made other concessions as well. The AFL-CIO Office of Investment now needed to decide whether to continue to use its limited resources focusing on Home Depot or find a new target to forward their cause.
Settings
Other setting(s):
2006-2007