The Home Depot, Inc. (NYSE:HD) surprised investors this morning by announcing the resignation of Chief Executive Officer Robert Nardelli. The "mutually-agreed" resignation comes after many dissident shareholders voiced concerns over the company's stock performance and corporate transparency. These concerns peaked during the company's last annual meeting, in which Nardelli angered investors by monotonously reading a written statement and then refusing to answer any shareholder questions. Meanwhile, there was also disappointment with the company's lackluster performance, especially in comparison to Lowe's Companies, Inc. (NYSE:LOW). Investors noted that LOW's revenues grew by 130% compared to HD's 78%, while LOW's ROA increased 52% compared to HD's nearly flat increase. On a more fundamental level, Lowe's customer service rating also rose to 78 from 75, while HD's decreased to 67 from 75 during the same time period. Combined, the company's performance and lack of corporate transparency ultimately caused the uproar that led to this resignation.

Investors are still concerned, however, over the CEO's estimated $210 million retirement package which includes a cash severance payment of $20 million, deferred stock awards valued at about $77 million and options with an intrinsic value of about $7 million; earned bonuses and long-term incentive awards of about $9 million; 401(k) and other benefit programs currently valued at roughly $2 million; previously earned and vested deferred shares with a value of $44 million; the present value of retirement benefits currently valued at about $32 million; and the payment of $18 million for other entitlements under his contract, which will be paid over a four year period. The company said that Vice Chairman Frank Blake will replace Nardelli.

Home Depot's stock rose $1.32, or 3.29%, to $41.49 on the news in today's trading session.

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