employment agreement severance agreement stock options

Stock Options Backdating Scandal Widens

New York Times: KB Home Ousts Its Chief and 2 Others. The longtime chief executive of KB Home, one of the nation’s largest home builders, resigned under pressure on Sunday night and agreed to return $13 million in profit from backdated stock options, the company said.

At first, I thought the stock options backdating problem was only a tech company issue. However, recent events indicate that this problem spans across companies from different industries and may be more widespread. I’ve posted KB Home contracts to the web site where you can find the employment agreement for Bruce Karatz from 1995 and 2001, as well as his recent resignation agreement with KB Home.