KB Home didn't detail how the backdated options came to pass, though it said Karatz and Ray selected the dates for the options, The Journal said.KB Home's board determined that the dates between 19were selected retroactively by the men without permission of the board, though the investigation didn't find evidence of intentional wrongdoing, The Journal said, citing an unnamed person familiar with the matter.Ray, the head of human resources, The Journal said.Hirst resigned and Ray was terminated, The Journal said.The backdating appears to have begun in 1998, when Mr.Karatz received more than 450,000 options, The Journal said.
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The company said it hasn't negotiated any terms of departure with Karatz other than the agreement to repay profits from backdating, The Journal said.
To correct its accounting for the backdating, KB Home said it expected to take charges of no more than million, according to The Journal.
An example illustrates the potential benefit of backdating to the recipient.
The Wall Street Journal (see discussion of article below) pointed out a CEO option grant dated October 1998.
KB Home also said it has created the new post of non-executive chairman and will conduct a search for the position, The Journal reported.