Home Depot Builds Caution

Home Depot said it would spend $350 million in the second half of 2006 to spruce up its retail operations.

In addition to its same-store sales reporting practices, Home Depot has been under fire for other corporate governance issues, including a rich compensation package for Nardelli, the absence of its board of directors (except for Nardelli) at its annual shareholders meeting in May and the recent disclosure that the Securities and Exchange Commission is investigating its stock-option practices.

On Tuesday, Home Depot said it has received certain lawsuits related to its stock-option procedures. The company has requested that its board complete a review of its historical stock-option practices.