Monday, November 13, 2006

Backdating problem at KB Home

Backdating continues in the news. reports: KB Home, one of the US's largest homebuilders, said Bruce Karatz, who had served as the Los Angeles-based company's only CEO since it went public, would repay the company $13m after it was found he had used "incorrect measurement dates for financial reporting purposes for annual stock option grants during the period 1998-2005."

The case is one of the few so far that points to the prevalence of improper backdating practices after the passage of Sarbanes-Oxley compliance and audit legislation in 2002.


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