This could be why KB Home shorts are so successful

Friday, 25 January 2008 05:00

This could be why KB Home shorts are so successful

font size decrease font size increase font size
Print
Email
Media

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
Officers

(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

Profitability
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