The Audit Committee is comprised of the following five members from the Board; F. Duane Ackerman, Ari Bousbib, J. Frank Brown, Karen L. Katen, and Mark Vadon. This group is tasked with assisting the Board with the oversight of The Home Depot’s financial statements, ensuring that they are in compliance with legal and regulatory requirements. They also review and monitor the Company’s Compliance program, making changes when appropriate to ensure that the Company remains compliant. This committee must be comprised of three or more independent directors from the Board and they cannot receive any compensation other than directors’ fees from Home Depot. A requirement for this committee is to have a basic understanding of finance and accounting principles and practices. At least one member must be an “audit committee financial expert.” Mr. Brown acts as the audit committee financial expert. The members of this committee all have knowledge in basic accounting and finance principles and also bring in a variety of knowledge in different areas.
Leadership Development & Compensation Committee
The Leadership Development and Compensation Committee of the Board of Directors are responsible for helping with the development, attraction, and retention of The Home Depot’s leadership. They are also responsible for establishing the Company’s compensation and benefit programs. Some of their goals are as follows:
1. To establish the compensation policies and strategy of the Company.
2. To review compensation policies and ensure that the compensation of the Board of Directors, officers and associates allows for the Company to attract and retain high-quality leadership.
3. To establish policies related to human resources and employment matters. ("Leadership development &," 2013)
Members of this committee are independent outside directors. In order to become a member of this committee, an individual who meets the qualifications would be nominated by the Board, upon the recommendation of the Nominating Corporate Governance Committee; this process occurs annually. Members of this committee are Gregory D. Brenneman, Albert (Al) Carey, Armando Codina, Helena B. Foulkes, and Bonnie G. Hill.
A major role of this committee is the reviewing of the Company’s compensation strategy. Ensuring that the compensation strategy aligns with their goal to attract and retain high-quality leadership is crucial to the success of The Home Depot. They must make certain that management is awarded the appropriate incentives and rewarded appropriately for its contributions to the growth and profitability of the Company. The Home Depot’s compensation strategy must also align with all of the Company’s objectives and stockholder interests. ("Leadership development &," 2013)
Two compensation policies in place are the Executive Compensation Clawback Policy and the Independent Compensation Consultant Policy. The Executive Compensation Clawback Policy allows for the...