KB Home (NYSE:KBH) has decided to cut its chief executive Jeffrey Mezger’s annual bonus by 25% after a more than two-minute recording emerged of him allegedly berating his neighbour, comedian Kathy Griffin, in an expletive-laced tirade, complete with sexist and homophobic language.
The recording, which was published by HuffPost, is believed to have taken place after Griffin and her boyfriend called the police to complain about noise coming from his house. Mezger’s grandchildren were said to be using his pool at his Bel Air home at the time.
Comedian Kathy Griffin was verbally assaulted by neighbor Jeffrey Mezger, CEO of KB Homes https://t.co/qKnNxC5NKO pic.twitter.com/HcXBjdJRvk
— HuffPost (@HuffPost) 19 September 2017
In a statement issued on Thursday, the board said the move was decided because his “recent behavior in his personal dealings with a neighbor is unacceptable and a negative reflection on KB Home.” It also warned that if there was any "similar incident" in the future, Mezger will be dismissed.
The company however backed the CEO, noting that he "has always conducted himself in a professional manner during his tenure at KB Home. He has been a very effective CEO ..."
Mezger last received bonus in 2014
It is not immediately known how much Mezger stands to lose. Mezger, who became CEO of the home builder in 2006, was paid US$1mln in salary and almost US$8mln in stock and option awards and incentive compensation last year. There was no cash bonus awarded.
The statement by KB Home, the country's sixth largest publicly-traded homebuilder, did not state whether the decision will affect other remuneration beyond his salary.
It is understood that Mezger last received a cash bonus in 2014, amounting to US$125,000.