KB Home
Encyclopedia
KB Home is a homebuilding company based in the United States, founded in 1957 as Kaufman & Broad in Detroit, Michigan
. It was the first company to be traded on the NYSE as a home builder and is a Fortune 500
company. Its headquarters are in Los Angeles
, California
.
.
The company has periodically acquired other homebuilders as the company expanded into new markets. This includes San Antonio-based Rayco Homes in 1996 and Upland, California-based Lewis Homes in 1999. It also maintained a division in France, which was sold in 2007.
As part of a promotion, in 1997 the company built a life-sized replica of The Simpsons
cartoon home in Henderson, Nevada
.
In 2001 KB Home was sued when homeowners in a subdivision in Arlington, Texas discovered that their homes were built on top of a practice bombing range from the 1940s and 50s which the military had cleared for development. That suit has since been settled. The Army Corps of Engineers was engaged in remediation.
In November 2006, KB Home President, CEO and Chairman Bruce Karatz
resigned after an internal accounting probe into his alleged backdating of stock options grants. KB Home also announced the resignation of its head of Human Resources, Gary A. Ray, and the resignation of its Chief Legal Officer, Richard B. Hirst. The company determined that Karatz and Ray had picked grant dates under the company's stock option plans. According to the Wall Street Journal, Karatz was one of the most highly paid executives in 2005, earning almost $156 million, primarily from options.
Karatz was succeeded by Jeffrey T. Mezger, who is the current CEO.
The company was named "Most Admired Homebuilder" by Fortune Magazine in 2006, 2008 and 2009.
In fiscal 2008, the company delivered 12,438 homes in the United States and had revenue of over $3 billion. This is down from close to 40,000 homes and more than $9 billion in revenue at the height of the real estate boom in 2005.
Detroit, Michigan
Detroit is the major city among the primary cultural, financial, and transportation centers in the Metro Detroit area, a region of 5.2 million people. As the seat of Wayne County, the city of Detroit is the largest city in the U.S. state of Michigan and serves as a major port on the Detroit River...
. It was the first company to be traded on the NYSE as a home builder and is a Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
company. Its headquarters are in Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
.
History
KB Home was founded in Detroit in 1957 by Donald Kaufman and Eli BroadEli Broad
Eli Broad is an American businessman from Detroit, Michigan who resides in Los Angeles, California.-Life and career:An only child, Broad was born in the Bronx to Lithuanian Jewish immigrant parents. His father was a housepainter, his mother was a dressmaker. His family moved to Detroit when he...
.
The company has periodically acquired other homebuilders as the company expanded into new markets. This includes San Antonio-based Rayco Homes in 1996 and Upland, California-based Lewis Homes in 1999. It also maintained a division in France, which was sold in 2007.
As part of a promotion, in 1997 the company built a life-sized replica of The Simpsons
The Simpsons
The Simpsons is an American animated sitcom created by Matt Groening for the Fox Broadcasting Company. The series is a satirical parody of a middle class American lifestyle epitomized by its family of the same name, which consists of Homer, Marge, Bart, Lisa and Maggie...
cartoon home in Henderson, Nevada
Henderson, Nevada
-Demographics:According to the 2000 census, there were 175,381 people, 66,331 households, and 47,095 families residing in the city. The population density was 2,200.8 people per square mile . There were 71,149 housing units at an average density of 892.8 per square mile...
.
In 2001 KB Home was sued when homeowners in a subdivision in Arlington, Texas discovered that their homes were built on top of a practice bombing range from the 1940s and 50s which the military had cleared for development. That suit has since been settled. The Army Corps of Engineers was engaged in remediation.
In November 2006, KB Home President, CEO and Chairman Bruce Karatz
Bruce Karatz
Bruce Karatz is an American homebuilder and philanthropist noted for his role as CEO in the development of KB Home from 1972 through 2006, and for his philanthropic efforts to help re-build Los Angeles after the L.A. Riots and New Orleans following Hurricane Katrina...
resigned after an internal accounting probe into his alleged backdating of stock options grants. KB Home also announced the resignation of its head of Human Resources, Gary A. Ray, and the resignation of its Chief Legal Officer, Richard B. Hirst. The company determined that Karatz and Ray had picked grant dates under the company's stock option plans. According to the Wall Street Journal, Karatz was one of the most highly paid executives in 2005, earning almost $156 million, primarily from options.
Karatz was succeeded by Jeffrey T. Mezger, who is the current CEO.
The company was named "Most Admired Homebuilder" by Fortune Magazine in 2006, 2008 and 2009.
In fiscal 2008, the company delivered 12,438 homes in the United States and had revenue of over $3 billion. This is down from close to 40,000 homes and more than $9 billion in revenue at the height of the real estate boom in 2005.