This increases the value of the options and secures financial gains for employees. Department of Justice has charged some executives for failing to disclose the practice.The practice is legal, so long as companies record the options as a non-cash compensation expense. Prosecutors say Karantz cost KB Home and its shareholders about million.
where his father owned a movie theater and his mother was a homemaker.He graduated from high school in 1963 and from Boston University in 1967.Marketplace Reporter Alisa Roth contributed to this report. During the 20 years Karatz served as CEO, KB Home grew revenues from 1 million to billion and grew annual home deliveries from 4,500 homes in 1986 to over 39,000 homes in 2006.In 2006, KB Home was ranked the #1 homebuilder in Fortune Magazine’s 2006 list of America’s Most Admired Companies and was listed by Fortune as one of America’s Most Admired Companies and won the American Business Award as the Best Overall Company.
After the Los Angeles riots in 1992, Kaufman and Broad spearheaded the effort to rebuild Camp Hollywoodland, a rustic canyon retreat for inner-city children whose main hall, dining room and other structures were gutted by fire.
After spending a short time as an in-house counsel, Karatz moved to the home building side of the business and soon thereafter became head of KB Home’s French division.
He made a mark in 1977 when he installed a full-sized model home on the roof of the Au Printemps department store. During his time in France, KB Home grew into one of France's largest homebuilders.
During his tenure as CEO, KB Home became a Fortune 500 company.
Karatz oversaw a 1476% increase in the company’s market capitalization, an 800% increase in the companies stock price, a 575% growth in revenue, a 400% rise in dividends and increased the number of employees from less than 500 to over 6,000.
And whether they're too light for white-collar criminals like Karatz.