Bob Nardelli, former CEO of Home Depot (NYSE:HD), has been offered a new job at the private equity fund Cerberus Capital even after his questionable tenure at the Home Depot. While the CEO's reputation in the public sector may be forever tarnished, there are apparently many opportunities in the private equity world for experienced managers. Many private equity firms are looking for seasoned managers to run companies in their portfolios, seemingly regardless of their history. Bob Nardelli was ousted from Home Depot late last year after investors balked at his refusal to address their concerns about underperformance, extensive golden parachute and compensation while investors were losing millions, and his inability to effectively deal with the press. Given the secrecy and deep pockets of private equity, perhaps this is where future high-calibur CEOs will be drawn, which will likely end up increasing the amounts that public companies will be forced to pay to keep talent onboard. An interesting development, indeed...

The Financial Accounting Standards Board (FASB) has agreed to give the Securities and Exchange Commission (SEC) more say in the process governing appointments to the group, which sets accounting rules for thousands of public and private U.S. companies. The move was first outlined in a recent letter to SEC Chairman Christopher Cox but the SEC's role is not clearly spelled out. Many investors are hoping that the FASB will work towards reducing the number of arcane rules that are causing some U.S. companies to move offshore in order to save on costs. While the new arrangement with the SEC is far from perfect, investors now know who can be held accountable if positive changes aren't made. The main argument, however, is that changed appointments may raise the risk of political interferance; after all, it's not unheard of for Congress to muscle the FASB into making changes (read: options). Whether or not there will be problems remains to be seen; however, this is definitely an important development that investors should watch carefully.

The Supreme Court made it harder today for whistle-blowers to share in the proceeds from fraud lawsuits against government contractors. The False Claims Act enabled individuals acting on the government's behalf to file fraud lawsuits against companies that do business with the government. Upon favorable ruling, they would then receive a portion of what the contractor must pay the government. The problem occurs once allegations aer disclosed publicly since people could simply read a newspaper account or indictment then rush to the courthouse to file a suit. Now whistle-blowers must show that their information led the government to the fraud, although not necessarily that the claims ultimately proved to a jury must also have come from them. Overall, this case should not inhibit whistle-blowers, but rather prevent people from trying to take advantage of the situation.

General Motors (NYSE:GM) urged shareholders to reject all ten shareholder proposals for its June 5th annual meeting and to re-elect its current slate of directors. Interestingly, the shareholder proposals included things such as required disclosure of political donations, cut emissions of greenhouse gases and an easier process for smaller shareholders to elect directors. There is also an executive compensation proposal on the table, whereby 75% of all stock options and grants given to executives would have to be tied to a performance metric. The company did not comment on their reasoning behind their recommendations yet; however, they are due to explain themselves in their upcoming proxy filing in April. Meanwhile, many investors are questioning why companies are being so evasive when it comes to executive compensation and increased transparency - clearly, these measures are best for shareholders.

Gary Gerhardt, the former CFO of Engineered Support Systems, Inc., has been indicted on charges of participating in a scheme to backdate stock options between 1996 and 2002 according to federal prosecutors. The former CFO is being charged for 10 counts of fraud after he allegedly personally made $1.9 million in profits from the scheme. The man is the second former executive of the company to face charges, after Steven Landmann - the company's controller - plead guilty on March 16th.

Southwest Airlines (LUV) revealed that its chief executive received a compensation package valued at less than $1 million in 2006, even as the carrier posted its 34th straight year of profits amongst other struggling airlines. The company's SEC filings showed CEO Gary Kelly receiving only $967,021 last year. This amount consisted of a $416,860 base pay, a $462,000 bonus, $620 in above-market deferred compensation, and $96,541 in other compensation including 410k contributions, medical insurance, and profit sharing. The three year contract under which Kelly is working allows for a below-average salary with a greater number of stock options. Moreover, the CEO's bonus was only 20 percent larger than in 2005, while the company's profits were up 38%. Southwest's employees were also compensated at levels designed to promote consistent profitability and stability of workers, according to the company's filings. Clearly this is a model for other airlines who have been experiencing problems with profitability and executive compensation.

Northwest Airlines Corp (NWACQ) flight attendants objected Monday to the company's failure to disclose how much its executives and directors would be paid when the company emerges from bankruptcy protection later this year. Northwest's latest filings detailed its reorganization plan but left out the part about executive compensation, which it plans to file at a later date. The flight attendants union argued in a bankruptcy court filing on Monday that it's impossible to evaluate the reoganization plan without knowing how much executives and irectors would be paid and how they would be selected. They argued that cuts imposed on them came with the understanding that management would sacrifice too - which remains to be seen...

Delta Air Lines announced a new pay package on Tuesday that would grant $480 million in employee pay and benefits while putting the CEOs pay and benefits on hold as the carrier plans to emerge from bankruptcy late next month. The new employee compensation plan calls for a cash lump sum payment of 8 percent of last year's salary, stock awards, incentive performance awards, profit sharing, pay raises of 4 percent, and 401k contributions. CEO Gerald Grinstein said, "We want to get them as fast as we can up to an industry average. [The executives'] basic salary part of their compensation is not going to go up until everyone else in the company is up to the industry average."

The plan has many employees satisfied while Grinstein commented that while the pay has been lousy for executives (comparitively), the rewards have been great with the greatest reward being the opportunity to work with employees to rebuild the company. And with the end of bankruptcy in sight, it could mean a nice payday for everyone involved!

Goldman Sachs Group Inc. (NYSE:GS) said Monday that it was named as a defendant in a shareholder lawsuit challenging the way the firm accounts for employee options. The plaintiffs contend that the company's proxy statement undervalues stock option awards while the company's senior management received excessive compensation. Specifically, the shareholders claim that the company issued excessive compensation (constituting corporate waste) due to the company not following the proper methodologies when calculating compensation. The lawsuit names the company's board of directors, executive officers, and members of its management as defendants seeking an injunction against the March 27th annual shareholders meeting and the voiding of any election of directors in the absence of an injunction. This is one of the first lawsuits of its kind since the new executive compensation rules took place, so it will be interesting to see if it goes anywhere or is simply dropped by the courts.