This is not a bankruptcy issue, but is of local interest and related to the problems many companies have faced with poor accounting practices and questionable compensation packages.


However, Nardelli recently faced criticism from shareholders for what they claimed was his very "generous compensation package" relative to the stock’s weak performance and declining profits in the face of a general slowdown in the housing market….  According to the terms of the separation agreement, Nardelli is entitled to receive approximately $210 million, including amounts which have previously been earned or vested, complying with the terms of the employment contract entered into in 2000.  Additionally, Nardelli is entitled to the payment of account balances under the company’s 401(k) plan and other benefit programs currently valued at a total of approximately $96 million.

See this December 7, 2006  article from USA Today regarding stock option backdating at Home Depot —

Home Depot routinely backdated stock options grants for executives and employees at all levels of the company for nearly 20 years, according to an internal investigation whose results the company announced Wednesday.  It said in a statement the investigation by a board subcommittee and the Hogan & Hartson law firm found "there was no intentional wrongdoing by any current member of the company’s management team or its board of directors."  Because of the errors, which included regular backdating of grants from 1981 through November 2000, the company had unrecorded expenses of about $200 million, Home Depot said…. Home Depot’s findings could cause public relations problems for two members of its board:

•CEO Robert Nardelli. Named CEO on Dec. 6, 2000, Nardelli had nothing to do with the backdating earlier, according to the report. But he has become a lightning rod for criticism of excessive CEO pay. He has collected some $200 million in salary, bonuses and options since joining the company, but Home Depot’s shares have declined in value during that time.