KB Homes CEO May Get Windfall
Wouldn’t it be great to receive $175 million in severance pay, pension benefits and stock options when you left your position as CEO? Bruce Karatz, who stepped down last week as chief executive of KB Home may be thinking that it is in fact, one sweet deal.
Sure, he retired amid a controversey surrounding $13 million in incorrectly reported stock options (back dating). He’s going to pay them back. After all, what’s $13 million when you are expecting a windfall of $175 million anyway?
True, the KB Homes board may decide to take steps to revoke Karatz’s severance pay and/or retirement benefits, but those discussions haven’t even shown up on their radar yet. Will the board put their foot down and severely cap the former CEO’s financial package or will they simply turn the other cheek and take a “good riddance” position?