The head of Home Depot Inc. left the home improvement chain on Wednesday in a mutual agreement, taking with him a severance package worth about $210 million US.

The surprise departure of Bob Nardelli from the role of chief executive officer after six years came amid investor unhappiness over Home Depot's share price performance. Nardelli also stepped down as chairman of the board.

Home Depot chief executive and chairman Bob Nardelli, pictured here, resigned as chairman and chief executive on Jan. 3. The decision was by mutual agreement, the Atlanta-based company said. Home Depot chief executive and chairman Bob Nardelli, pictured here, resigned as chairman and chief executive on Jan. 3. The decision was by mutual agreement, the Atlanta-based company said.
(Ric Feld/Associated Press)

Under Nardelli's employment agreement, he will leave the company with a massive severance deal, including a cash payment of $20 million US, the acceleration of unvested deferred stock awards currently worth about $77 million US, and unvested options with an intrinsic value of about $7 million US.

Nardelli has agreed not to compete with the company for one year, not to solicit employees or customers of Home Depot for four years, and other conditions, the company said in a release.

The departure of Nardelli has come just four months after he told the Associated Press that he had no plans to depart.

Nardelli was replaced immediately by Frank Blake, the company's vice-chairman.

Investors responded to the executive shuffle by sending Home Depot shares higher. Although it finished down from its peak of the day, the stock rose more than two per cent, gaining 91 cents to close at $41.07 on the New York Stock Exchange.