KB Home CEO awarded $6 million bonus for 2007 ($24.4 million total compensation - stock fell 60%)

[UpInArms]

Source: Reuters

NEW YORK, March 5 (Reuters) - Jeffrey Mezger, chief executive of home builder KB Home (KBH.N: Quote, Profile, Research) was awarded a cash bonus of $6 million in 2007 on top of his annual base salary of $1 million, according to a regulatory filing on Wednesday.

His total compensation came to about $24.4 million, including $16 million in restricted stock and "phantom" shares granted in 2007 that will vest in the future as part of a long-term incentive plan, according to the filing with the Securities and Exchange Commission. Phantom shares are securities that act like stock but aren't technically shares.

<snip>

In fiscal 2007, which ended in November 2007, the company's stock fell nearly 60 percent.

KB Home's compensation committee "uses it own judgment when establishing the mix of compensation elements it approves for" its executive officers, according to the filing.

Read more: http://www.reuters.com/article/bondsNews/idUSN051727420080306?sp=true

[tyne]

1. Under an Obama presidency

things like that will not be happening.

[PSPS]

3. I scoured the Obama website and didn't see anything mentioning this kind of thing.

Please elaborate on what specific policy Obama proposes to deal with this. Feel free to provide links so that we can all benefit.

Thanks.

[Viva_La_Revolution]

2. I hope he does!

Then we can watch the whole trial, minute by minute on CourtTV. Expert witness after expert witness detailing to the american public the seriousness of the situation.
:)

[fed-up]

4. is this what they are teaching in Business Schools??? nt

[Captain Angry]

6. Nope.

In Business School, you learn that it is your responsibility as a board member or compensation committee member, to make the best decisions in the interest of the shareholders.

This is a clear violation of that mandate, and as such, the investors will get to decide which board members stay employed next time it comes up for a vote.

That bonus came right off the company's income. An income that is suffering. They could have kept that money for dispersion as a dividend, or a buyback of some shares at the low price it's at now.

We'll see what happens.

[salin]

5. Yup, private enterprises always squeeze out inefficiencies

compared to public ventures... that is the root argument for privatization - sure works well doesn't it? :sarcasm: