Criticism of Nardelli has heightened lately as at least one investor group, Relational Investors, has proposed strategic alternatives for the home-improvement retailer due to what the firm called its "chronic inferior stock price." Nardelli has also been said to have earned about $225 million during his six-year tenure in his position.

Under the terms of his resignation, Nardelli will receive about $210 million. That includes a $20-million cash payment, $84 million in stock options, $9 million in bonuses, 401(k) payments of $2 million, $44 million in shares already earned, retirement payments of $32 million and $18 million in additional compensation.

Nardelli is not allowed to compete with Home Depot for a year and can't solicit the company's employees or customers for four years. His compensation package will not be paid out over the next four years if he violates those obligations.