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KB Home Cuts CEO's Bonus In Essentially Worthless Response To Vulgar Rant

KB Home Cuts CEO's Bonus In Essentially Worthless Response To Vulgar Rant

If this wrist slap were any lighter, they’d have to administer it with a feather.

KB Home’s board of directors pledged Thursday to cut CEO Jeffrey Mezger’s bonus payment by 25 percent this year after he was recorded shouting insults at his neighbor Kathy Griffin.

The penalty is essentially meaningless, since Mezger isn’t regularly paid a bonus ― and when he is, it’s a pittance compared to his annual compensation.

According to its 2016 shareholder report, KB Homes last paid Mezger a bonus in 2014. That year, in addition to his total compensation package of $10,349,483, he was awarded a bonus of $125,000:

A hypothetical 25 percent penalty on the $125,000 sum that year would amount to a deduction of $31,250, or just 0.3 percent of Mezger’s total compensation.

KB Home didn’t respond to a request from HuffPost clarifying what the CEO’s bonus might be this year, assuming he’s awarded one.

Earlier this week, HuffPost obtained and published an audio recording of Mezger shouting vulgarities at Griffin after she and her boyfriend reported an hourslong noise disturbance at Mezger’s house to the Los Angeles Police Department last Saturday.

In the explicit recording below, Mezger calls Griffin a “bald dyke” and a “cunt,” among other things.

“Mr. Mezger regrets losing his temper over a supposed noise complaint involving his three young grandchildren in his swimming pool around 8 p.m. on Saturday, while they were being supervised by their mother and grandmother,” KB Home told HuffPost in a statement regarding the audio recording. “He apologizes for the language he used, as it does not reflect who he is or what he believes.”

In its filing with the SEC Thursday, KB Home called Mezger’s behavior “unacceptable and a negative reflection on KB Home.” Mezger has served as the company CEO since 2006.

Published at Thu, 21 Sep 2017 16:42:56 +0000