Richard Grasso will be leaving the board of directors of
The former chairman of the
New York Stock Exchange
announced plans to leave the board of hardware retailer earlier this year after new exchange rules mandated his resignation. But after an embattled Grasso
stepped down from the Big Board in September, some questioned whether he would follow through on his Home Depot plans.
Grasso and the company put those questions to rest on Wednesday. As previously planned, Grasso will not stand for re-election as a director of Home Depot when his term expires in May, the company said.
Asked why Grasso decided to follow through on his resignation, a Home Depot spokesman demurred, promising to respond later. At deadline, the representative had yet to respond.
Home Depot also announced that William Davilla will also not run for re-election next year. The president emeritus of Vons, a unit of
, Davilla, 72, had reached Home Depot's retirement age, the company said.
Grasso's role at Home Depot drew criticism from corporate governance experts, among others. Having the head of the NYSE serve on the board of a company ostensibly regulated by the exchange posed a clear conflict of interest, they argued.
The NYSE attempted to address those concerns with new governance rules it
issued in June. Under those rules, NYSE officers were prohibited from serving on the boards of listed companies. In reaction, Grasso, who also served as the NYSE's CEO, announced he would leave Home Depot's board.
questioned the fact that Home Depot co-founder and board member Ken Langone sat on the board of the NYSE. Grasso and Langone had an interlocking relationship, each serving on the compensation committees of the other's organization.
That relationship drew greater scrutiny following disclosures about Grasso's mammoth $140 million pay package. Shock and disgust among NYSE members, federal regulators, politicians and investors over revelations about Grasso's outsized compensation eventually led to his resignation.
Thursday afternoon, Home Depot shares were down 10 cents, or 0.3%, to $36.52.