Los Angeles-based homebuilder KB Home filed papers on Tuesday that would allow 15 of its top executives to sell more than half a billion dollars worth of stock.
In a filing with the Securities and Exchange Commission, KB Home listed 15 executives, including Chairman and Chief Executive Bruce Karatz, who acquired 5.2 million shares through incentive plans and stock grants issued in 1999 and 2001. This registration would allow the executives to sell shares if they choose to do so, and if the stock is vested and not restricted at that time.
Karatz registered the highest amount, nearly 2.4 million shares, with a value of approximately $254 million. He would be left with just under 350,000 shares if he sold them all. Chief Operating Officer Jeffrey T. Mezger registered 803,002 shares, worth nearly $84.9 million.
As of the date of the filing, Karatz held 5.3 percent of KB Home's stock while Mezger held 2.1 percent of outstanding shares. Some of the shares registered represent stock options that will not vest for six months or longer.
"This is a technical filing to register employee stock option plans and grants which have previously been approved by the company," said Derrick Hall, KB Home Vice President of Corporate Communications. "It has no correlation to the selling of stock and does not indicate any intention by any employee of KB Home to sell shares in the company."
The filing allows for KB Home insiders to sell as many as 10 million shares, with an aggregate offering totaling as much as $1.06 billion. However, the filing said those totals included potential stock splits, dividends and other events that could increase the selling shareholders' holdings before they sell.
KB Home shares have risen 49 percent in the past year, not counting adjustments made for dividend payments, which would increase the return to 51.2 percent.
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