Arthur Blank, co-founder and co-chairman of The Home Depot (Atlanta) today notified the company's board of directors that he will not stand for re-election to the board in 2001. He will continue to serve as co-chairman until his term ends May 30, 2001, at which time Bernard Marcus — co-founder and co-chairman – is expected to continue as sole chairman of the board.
Blank told the board that his decision was based primarily on a successful transition of the ceo role to Bob Nardelli. “I always knew that my own success would, in part, be measured by finding the right successor to me,” said Blank. Nardelli – lured from General Electric – was introduced as ceo on Dec. 5, 2000.
“Arthur has been critical to the success of The Home Depot and its unique culture for 22 years,” Marcus said, in a statement. “On behalf of the board, I want to express our gratitude for Arthur's vision, development and leadership.”
Blank has accepted the volunteer position of chairman of the Atlanta Chamber of Commerce, which will run from December 2002 through 2003.
Blank was named ceo on May 28, 1997, when Marcus became chairman. During Blank's tenure, sales rose from $19.5 billion in fiscal year 1996 to $45.7 billion for fiscal year 2000, and expanded its EXPO Design and Villager's Hardware concepts. However, Home Depot has had some problems lately, however, and earlier today announced flat sales and declining earnings in its recently concluded fourth quarter.
Blank and Marcus founded The Home Depot in 1978. They were working for Handy Dan Improvement Centers, a division of Daylin – Blank as an accountant, Marcus a sales executive – when they were fired by a corporate raider. They opened their first three stores in Atlanta in 1979, and soon had losses of nearly $1 million. By 1980, however, the stores were profitable and the company went public in 1981.