A proxy fight at Home Depot? Could be. Rational Investors wants an independent committee of the household retailer’s board to do a strategic review and look at management performance.
After buy-out rumors and complaints about executive compensation and performance, it is about time that a large investment group attack Home Depot at the board level.
DeutscheBank says that it views the move by Rational as proof that Home Depot is undervalued.
The comany has screwed up a number of things including option grants that lead to restatements from 1981 to 2000. Investors have to wonder what the board, especially its compensation committee, was up to.
HD trades at just over $40, up slightly on the day. The stock was at $50 a little over four years ago. Since then, the stock is down over 20% while the S&P is up over 20%.
Perhaps some other insitutions will pile on and shareholders will get some results.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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