| 3. Jeffrey T. Mezger, KB Home | 2014 Salary | % Total |
| % Change Vs. 2013 | Breakdown ($) | Comp |
| 47.83% | ||
| Base salary | 1,000,000 | 9.66% |
| Bonus | 125,000 | 1.21% |
| Stock Awards | 5,500,000 | 53.14% |
| Annual Incentives | 2,034,750 | 19.66% |
| Non-Equity Incentive | 790,000 | 7.63% |
| Change in Pension Value | 830,924 | 8.03% |
| All Other Comp | 68,809 | 0.66% |
| TOTAL COMP | 10,349,483 |
- Mezger’s base salary has been unchanged since 2006.
- His maximum annual incentive was based on targets for both pretax income and revenue. But while the company exceeded pretax income targets by more than 6%, it fell 4% below its revenue target, resulting in a lower $2,034,750 payout than the $2,725,500 paid in 2013.
- The payout of a $790,000 long-term incentive plan cash award was the result of a 2011 three-year award—the award was earned based on an adjusted operating income improvement of nearly $250 million over the performance period.
- The $830,924 change in pension value is an actuarial-based changed tied to interest rate fluctuations.
- The $5,500,000 in stock and option awards was the result of an increase in total grant value for retention as well as performance. The PSUs amounted to $2.86 million, and the stock options accounted for $2.64 million. The PSUs are based on earnings per share growth (50%), return on capital invested (20%) and revenue growth rank vs. its peer group (30%)
