Before KB Home (NYSE:KBH) investors got an update on a quarter that produced better-than-expected results, CEO Jeffrey Mezger addressed his dust-up with comedian and neighbor Kathy Griffin, again.
"I regretted the incident immediately and I've apologized for it sincerely. The board of directors has already taken action as the company has disclosed and I and the KB Home team are fully focused on leading this company into the future," said Jeffrey Mezger, chairman, president and chief executive officer before kicking off the homebuilderâ€™s third-quarter earnings conference call to discuss a 25% jump in revenues that reached $1.14B, helped by a 12% jump in home selling prices.
While Mezger did not mention Griffin by name, accounts of his off-hours tirade against her and boyfriend Randy Bick, made headlines last week.
Mezger was recorded hurling homophobic and profanity filled slurs against the two, who live in close proximity to his family, in an upscale Los Angeles gated community. The corporate chieftain was reportedly enraged after the couple called the Los Angeles Police Department (LAPD) to lodge â€œan hours-long noise disturbance,â€ according to the Huffington Post, which obtained the audio recording from Bick.
News of the off-color rant earned Mezger a 25% pay cut for his 2017 bonus. Still the board stood by Mezger while also giving him a warning.
â€œJeffrey Mezger has always conducted himself in a professional manner during his tenure at KB Home. He has been a very effective CEO and a great leader for the Company. Mr. Mezger has the full and complete confidence of the Board. However, Mr. Mezgerâ€™s recent behavior in his personal dealings with a neighbor is unacceptable and a negative reflection on KB Home...The Board has informed Mr. Mezger that if in the future there is any similar incident, he will be dismissed,â€ according to an SEC Filing.
Following the incident Griffin and Bick filed a request to get a restraining order against Mezger, The Blast reported.
KB Home is the sixth largest publicly traded homebuilder and caters to first-time and first move-up homebuyers, as well as active adults, according to the company. Shares have gained 36% this year.
Griffin has also had her fair share of negative publicity this year after she was pictured holding a severed gory head in President Trumpâ€™s likeness, which was met with nationwide backlash. CNN, which featured Griffin in its annual New Yearâ€™s Eve coverage, fired the comedian after the incident.