KB Home CEO Leaves After Options Review - Houston Chronicle
ALEX VEIGA AP Business Writer
>>The resignation of KB Home Chairman and Chief Executive Bruce Karatz in the wake of a stock options scandal leaves the company without the man who built it into one of the nation's top homebuilders during the past two decades.
Karatz, 61, was the latest corner-office victim of so-called backdating of employee stock options without properly accounting for the maneuver.
The situation also prompted the company to fire the head of its human resources department, Gary A. Ray. Richard B. Hirst, executive vice president and chief legal officer, resigned.
The inquiry revealed that Karatz and Ray had selected the grant dates for the stock options, and no other senior executives had a role in establishing incorrect grant dates.
KB Home refused to comment further on Monday.
Still, the loss of Karatz came as KB Home and other homebuilders are struggling through a housing market slowdown.<<
I know someone who interviewed to work with them.