One of the things that is striking is the way in which corporate executives and pundits, no matter how much of a failure they might be, just recycle themselves into a new life, without so much as a hint that they failed (I guess the same can be said for coaches and managers of sports teams, too, but that’s another story). So, today, we learn that Cerberus Capital Management,  the private equity group that bought Chrysler, has hired Robert Nardelli to be the auto maker’s CEO.

    In case you don’t remember, Nardelli is the same CEO who was the CEO of Home Depot and walked away with $210 million after alienating shareholders and board members. The New York Times reports that:

Chrysler’s new owner, the private equity firm Cerberus Capital Management, chose Mr. Nardelli because of his turnaround expertise, people with direct knowledge of the Cerberus plans said.

     But, it’s not clear why Nardelli deserves the reputation as a "turnaround" expert. During a six-year stint as CEO of Home Depot, the company did very poorly—yet he took home $64 million; in one year, he pulled down $38.1 million. His board of directors finally revolted when he refused to accept even a symbolic reduction in his stock package—though he agreed to give up a guarantee that he wouldn’t necessarily receive a minimum $3 million bonus each year, he refused to tie his future stock awards to shareholder gains.

    The Times’ report about his compensation is a bit thin, too:

Mr. Nardelli’s entire compensation package will be based on Chrysler’s performance; he will not be paid if the company, which lost $1.5 billion last year, does not improve, people with knowledge of his appointment said.

It is not known how much he will make if he succeeds in returning Chrysler to sustained profitability. But executives at companies owned by private equity firms typically get a small ownership stake. Thus, they can be compensated generously if the business thrives.

    Does not getting *paid* if the company performs poorly also mean he won’t get stock options or other compensation? We will see–a guy as greedy as Nardelli does not strike me as someone willing to do any job without getting something in return–even if the business fails.