Tuesday, November 21, 2006

Corporate Turkey Time

Ex-KB Homes CEO, Bruce Karatz stepped down last week for his role in manipulating stock option grants. In addition Bruce had to repay the company $13 million as a result of gaming his own incentive pay.

This turned out to be a sweetheart deal as the Chief Executive gets to keep all of his retirement benefits. As Bruce resigned vs. being fired he will receive a severance package valued at 3 years of salary plus incentives (the same ones he illegally gamed) totalling $80 million.

Mr. Karatz also gets a $1 million annual pension and keeps those stock options worth $70 million. Recalling President Bush's comments post Hurricane Katrina, I wonder if he has "zero tolerance" for things like this?

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