Nardelli Works His Magic Again

Today, Bob Nardelli, CEO of Chrysler, announced he would leave the company after Chrysler completed its bankruptcy.  Now, you may sayit’s not his fault the company went under.  It’s been a really tough economy and he inherited a tough situation.  That’s true but if the economy in 4 years is worse than it is today, will people say well President Obama inherited a bad situation?  No, he’ll be on the hook.  Nardelli is on the hook. 

Nardelli’s track record isn’t that great after this latest catastrophe.  Before taking over as CEO of Chrysler, Nardelli was the CEO of Home Depot.  He took over at Home Depot in December, 2000.  During his tenure, Nardelli practically ran the company into the ground and left that company in January 2007 (see stock performance).  But, he didn’t leave Home Depot empty handed.  He walked away with $210 million, seven times more than the employees were to get that gave good customer service.  I’m not sure if you’ve been in a Home Depot lately but I’m sure they haven’t paid any money out with their horrible service.

How much will Nardelli get for this latest venture?  I doubt he’ll get the golden parachute he got last time.  He’s on quite a roll though isn’t he.  I sure hope he doesn’t take over for Steve Jobs at Apple@#$%>?

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2 Responses to “Nardelli Works His Magic Again”


  1. 1 Ken Dowdy May 1, 2009 at 2:57 pm

    Hi Karl,

    I’ve been listening to you for about a week now on biztalk radio and really enjoy your broadcast. I didn’t know how else to contact you, so I found your blog and this reply box. I was interested in possibly buying the CWB convertible bond etf you mentioned today, but I had a question about it. At the SPDR website I found this fact sheet (https://www.spdrs.com/product/fund.seam?ticker=CWB) that had a line showing “average coupon” of 2.86%. Is that the average rate of interest for all the bonds in the portfolio? Somehow I was under the impression it was a lot higher, but perhaps you were referring to a possible total return in the future. Could you please address this issue? Thanks.

    Ken

    • 2 keggerss May 1, 2009 at 3:28 pm

      Ken. Good question. That may be the yield on the bonds currently. That is low however, but yes I was talking total return. In other words, many bonds are yielding 2-3%, but if you calculate the discount in the bonds and the capital appreciation that will happen over time (YTM), many are over 10%. This ETF is a nice compliement for the individual bonds.


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