KB Home board approves salary increases for top executives

Published 15/07/2025, 22:12
KB Home board approves salary increases for top executives

The board of directors of KB Home (NYSE:KBH), a homebuilder with a market capitalization of $3.65 billion and strong financial health according to InvestingPro metrics, approved increases to the base salaries of certain executive officers, according to a statement included in a recent SEC filing.

The management development and compensation committee of the board approved the changes on July 10, 2025, with the new salaries effective as of July 1, 2025. The officers and their new base salaries are as follows: Robert V. McGibney, $930,000; Albert Z. Praw, $740,000; and Brian J. Woram, $740,000. The compensation adjustments come as the company maintains strong profitability with a return on equity of 14% and healthy liquidity ratios.

KB Home is a homebuilding company listed on the New York Stock Exchange. The information is based on a press release statement included in the company’s Form 8-K filing with the Securities and Exchange Commission. InvestingPro analysis indicates the stock is currently undervalued, with management actively buying back shares and maintaining dividend payments for 40 consecutive years. For deeper insights into KB Home’s valuation and performance metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, KB Home reported its second-quarter earnings for 2025, showing earnings per share (EPS) of $1.50, slightly above the forecasted $1.46. The company’s revenue matched expectations at $1.5 billion. Despite the earnings beat, KBW lowered its price target for KB Home from $65 to $58, citing concerns over lower deliveries and gross margins. UBS maintained a Buy rating on the company, highlighting the success of KB Home’s pricing strategy in various regions despite some delays in community openings. Raymond (NSE:RYMD) James reiterated its Outperform rating, noting KB Home’s strong cash flow and strategic pricing adjustments. The company has revised its fiscal year 2025 guidance, lowering its earnings estimates but maintaining a focus on returning cash to shareholders through dividends and share repurchases. KB Home also announced plans to reduce land investments in favor of share repurchases, aiming to align with current market conditions. These developments reflect KB Home’s strategic responses to the challenging housing market environment.

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