Bob Nardelli resigned as chairman and chief executive of Home Depot on Wednesday, delivering victory to shareholder activists who hounded him for accepting hefty pay increases while the share price of the largest home improvement chain in the US slumped.

Mr Nardelli, a former protégé of Jack Welch at General Electric known for his aggressive management style, had been in trouble since a stormy confrontation with investors at Home Depot’s annual meeting last year.