Buying & Selling: KB Home CEO Ousted

The news came out today that KB Home's longtime CEO, Bruce Karatz "resigned" after evidence surfaced that he was cooking the books for his stock options:

Karatz, a 34-year veteran of the company and CEO since 1986, has agreed to pay KB Home about $13 million to correct the pricing errors on the exercised and unexercised options, the builder said...KB Home in August confirmed it was reviewing options given to Karatz after The Wall Street Journal reported he received nearly $100 million from cashing out options dated when the stock hit unusual lows, citing regulatory filings.

KB Home, as longtime readers of this blog know, is no stranger to shady shenanigans, and it's poetic justice to see one of the biggest profiteers from the housing bubble get their just desserts.

It's of note, in fact, that Karatz is on record as saying that the current housing downturn is the "worst he'd ever seen." Given his prescience in foretelling the continuing descent of the market, one has to wonder how his smarts failed him when it came to keeping his own house in order.

Posted at November 13, 2006 03:16 PM

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The news came out today that KB Home's longtime CEO, Bruce Karatz "resigned" after evidence surfaced that he was cooking the books for his stock options: Karatz, a 34-year veteran of the company and CEO since 1986, has agreed to pay KB Home about $13 million to correct the pricing errors on the exercised and unexercised options, the builder said...KB Home in August confirmed it was reviewing options given to Karatz after The Wall Street Journal reported he received nearly $100 million from cashing out options dated when the stock hit unusual lows, citing regulatory filings. KB Home, as longtime readers of this blog know, is no stranger to shady shenanigans, and it's poetic justice to see one of the biggest profiteers from the housing bubble get their just desserts. It's of note, in fact, that Karatz is on record as saying that the current housing downturn is the "worst he'd ever seen." Given his prescience in foretelling the continuing descent of the market, one has to wonder how his smarts failed him when it came to keeping his own house in order.