The board of directors significantly cut his annual salary after the incident
KB Home CEO Jeffrey Mezger’s expletive-filled rant against his neighbor Kathy Griffin has cost him a hefty portion of his annual bonus.
“Mr. Mezger’s recent behavior in his personal dealings with a neighbor is unacceptable and a negative reflection on KB Home,” the homebuilding company’s board of directors wrote in a filing with regulators Thursday. The filing revealed Mezger would lose 25% of his annual bonus this year. Moreover, the board also warned that if Mezger were involved in a similar incident, he would be dismissed.
It’s unclear how much Mezger is expected to earn this year. But in 2016, that “bonus,” termed the non-equity incentive plan compensation, totaled nearly $3.8 million. 25% percent of that would be $950,000.
Exactly how much money Mezger stands to lose following his rant against Griffin will depend on the company’s performance through the end of the year. Last year, had Mezger met his baseline performance as decided by the board, he would have been eligible for $750,000. Had he hit company targets, he would have been eligible for $1.5 million. At most, Mezger could have earned $6 million from the non-equity incentive plan award.
In total, including stock, options, and his cash salary, Mezger earned $9 million in 2016.
The filing comes after Griffin reportedly filed a noise complaint against Mezger, after which he confronted the comedian and called her a variety of sexist and homophobic terms, including a “f–king bald d-ke” and “f–king c–t.” The exchange was caught on security camera, the Huffington Post reports.
The exchange cost Mezger a pretty penny even before board’s decision. He owns $12.1 million in KB Home stock, according to a recent Securities and Exchange Commission filing. Following Mezger’s tirade, shares of KB Home have slid about 3%—shaving off about $400,000 from his net worth.