Jeffrey T. Mezger, CEO of KB Home
3. Jeffrey T. Mezger, KB Home 2014 Salary % Total
% Change Vs. 2013 Breakdown ($) Comp
Base salary 1,000,000 9.66%
Bonus 125,000 1.21%
Stock Awards 5,500,000 53.14%
Annual Incentives 2,034,750 19.66%
Non-Equity Incentive 790,000 7.63%
Change in Pension Value 830,924 8.03%
All Other Comp 68,809 0.66%
TOTAL COMP 10,349,483  

  • Mezger’s base salary has been unchanged since 2006.
  • His maximum annual incentive was based on targets for both pretax income and revenue. But while the company exceeded pretax income targets by more than 6%, it fell 4% below its revenue target, resulting in a lower $2,034,750 payout than the $2,725,500 paid in 2013.
  • The payout of a $790,000 long-term incentive plan cash award was the result of a 2011 three-year award—the award was earned based on an adjusted operating income improvement of nearly $250 million over the performance period.
  • The $830,924 change in pension value is an actuarial-based changed tied to interest rate fluctuations.
  • The $5,500,000 in stock and option awards was the result of an increase in total grant value for retention as well as performance. The PSUs amounted to $2.86 million, and the stock options accounted for $2.64 million. The PSUs are based on earnings per share growth (50%), return on capital invested (20%) and revenue growth rank vs. its peer group (30%)