Friday, 25 January 2008 00:00

This could be why KB Home shorts are so successful

Maybe if
the CEO's compensation was a little more aligned with the shareholder's
compensation, shareholders would be happier and short sellers would be
less prevalent. As it stands now, the CEO is getting paid more (much
more) than the entire company made for the year. I know what I would be
saying if I was a long shareholder...
Item 5.02
Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
(e) On
January 22, 2008, the Management Development and Compensation Committee
(the “Compensation Committee”) of KB Home (the “Company”) determined
fiscal 2007 bonuses for the Company’s Named Executive Officers, in the
amounts set forth below:

Named Executive Officer Title Fiscal 2007 Bonus
Jeffrey T. Mezger
President and Chief Executive Officer $ 6,000,000

Profit Margin (ttm): -14.49%
Operating Margin (ttm): -18.96%
Management Effectiveness
Return on Assets (ttm): -10.33%
Return on Equity (ttm): -59.28%
Income Statement
Qtrly Revenue Growth (yoy): -41.60%
Gross Profit (ttm): 2.14B
EBITDA (ttm): -1.20B
Net Income Avl to Common (ttm): -1.41B
Diluted EPS (ttm): -12.04
Qtrly Earnings Growth (yoy): N/A

Stock Price History
Beta: 2.69
52-Week Change3: -54.49%
S&P500 52-Week Change3: -5.04%
52-Week High (02-Feb-07)3: 56.08
52-Week Low (09-Jan-08)3: 15.76
Last modified on Friday, 25 January 2008 00:00


  • Comment Link Reggie Middleton Monday, 28 January 2008 13:51 posted by Reggie Middleton

    KB Homes does not have any activist shareholders. If they did, this would not be happening. IMO, the CEO owes the shareholders a big refund of his bonus. He actually made more money than the entire company and all the shareholders for the year.

  • Comment Link eh Monday, 28 January 2008 08:19 posted by eh

    A kind of inside job -- he knows KBH isn't going to be making a profit in the foreseeable future, so why not take the cash while it's still there?

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