KB HOME (NYSE:KBH) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

KB HOME (NYSE:KBH) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

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(e)Long-Term Incentive Awards.

On October 4, 2018, the management development and compensation committee (“Committee”) of the board of directors of KB Home (“Company”) approved grants of long-term incentive awards to the Amended KB Home 2014 Equity Incentive Plan to the Company’s named executive officers — Jeffrey T. Mezger, the Company’s president and chief executive officer; Jeff J. Kaminski, the Company’s executive vice president and chief financial officer; Albert Z. Praw, the Company’s executive vice president, real estate and business development; Brian J. Woram, the Company’s executive vice president and general counsel; and William R. Hollinger, the Company’s senior vice president and chief accounting officer — and to certain other senior executives of the Company.

The long-term incentive awards granted to all of the Company’s named executive officers on October 4, 2018 consisted solely of performance-based restricted stock units (each, a “PSU”) corresponding to a target award amount of shares of KBHome common stock (“Award Shares”) for each recipient.

Each PSU granted on October 4, 2018 entitles a recipient to receive between 0% to 200% of the recipient’s Award Shares based on the Company’s achieving over the three-year performance period commencing on December 1, 2018 and ending on November 30, 2021 specified levels of (a) cumulative adjusted earnings per share; (b)average adjusted return on invested capital; and (c)revenue growth performance relative to a peer group of high-production public homebuilding companies. The earnings per share performance measure will determine 40%, the average return on invested capital performance measure will determine 35%, and the relative revenue growth performance measure will determine 25%, of the final number of shares of KBHome common stock that may be issued to each PSU. Each PSU recipient is also entitled to receive a proportionate amount of credited cash dividends that are paid in respect of one share of KB Home common stock with a record date between the grant date and the date the Committee determines the applicable performance achievements. If performance over the performance period for the three performance measures is below specific thresholds, each PSU recipient will receive no shares of KBHome common stock and no credited cash dividend amount.

The respective Award Shares for the PSUs granted to the Company’s named executive officers on October 4, 2018 are as follows:

Named Executive Officer

Performance-Based Restricted Stock Units (#)

Jeffrey T. Mezger

173,536

Jeff J. Kaminski

52,061

Albert Z. Praw

35,792

Brian J. Woram

33,623

William R. Hollinger

20,607


About KB HOME (NYSE:KBH)

KB Home is a homebuilding company in the United States. The Company constructs and sells a range of new homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family residential homes, townhomes and condominiums. Its segments include the West Coast, Southwest, Central and Southeast homebuilding segments, and financial services segment. Its homebuilding segments are engaged in the acquisition and development of land primarily for residential purposes. The financial services segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to its homebuyers in the same markets as its homebuilding segments, and also provides title services in various markets located within its Central and Southeast homebuilding segments. Its financial services operations also provide mortgage banking services, including residential consumer mortgage loan originations.

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