Investigation Overview
An investigation on behalf of current long term investors in shares of Beazer Homes USA, Inc. (NYSE: BZH) concerning possible breaches of fiduciary duties related to potential excessive compensation that was awarded to certain senior officers and executives at Beazer Homes USA, Inc. was announced.
The investigation by a law firm focuses on whether the directors and officers of Beazer Homes USA, Inc. harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in Beazer Homes USA, Inc. (NYSE BZH) focuses on possible shareholder claims that certain of Beazer Homess senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.
Beazer Homes CEO pay rose from about $6.43million in 09 to $6.893million in 2010, its CFO pay increased from about $2.571million in 2009 to $3.524million in 2010, its EVP and General Counsels compensation rose from about $444,000 in 09 to $1.113million in 2010, and its SVP, Chief Accounting Officers pay increased from roughly $340,000 in 09 to $608,000 in 2010.
However, Beazer Homes shareholders recently expressed their disdain for executive pay packages by voting no on Beazer Homes' say on pay provision. Beazer Homes USA, Inc. received less than 47% support for its pay practices at its February annual meeting, according to a company filing.
The investigation concerns possible claims that the prior compensation awarded at Beazer Homes USA, Inc. is improper based upon its current operating condition.
Beazer Homes 12months Total Revenue fell from $3.036billion reported on Sept. 30, 2007 to $1.009billion reported on Sept. 30, 2010. Its quarterly Revenue for the first quarter in 2011 decreased from $192.46million a year earlier to $127.50million.
Even though NYSE: BZH stock rose from as low as $0.29 per share in March 09 to recently $3.43, shares of Beazer Homes USA, Inc. (NYSE:BZH) had fallen from over $35 per BZH stock in 2007.
The investigation seeks to determine whether certain senior officers and executives at Beazer Homes USA, Inc. were awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that were excessive or unwarranted based on the Beazer Homes performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.
Finally the investigation focuses also on possible shareholder claims that would allow NYSE:BZH stockholders to more efficiently influence or control future compensation decisions at Beazer Homes USA, Inc.