Albert Praw
KB HOMEAbout Albert Praw
Albert Z. Praw is Executive Vice President, Real Estate and Business Development at KB Home, a role he has held since 2011; he previously served with KB Home from 1989–1992 and 1994–2006 and was CEO of Landstone Communities (2006–2011). He was 75 years old as of December 31, 2023 and had 27 years of cumulative service at KB Home; education is not disclosed in recent filings . During his tenure, KB Home delivered strong results: FY2024 revenues $6.93B (+8% YoY), diluted EPS $8.45 (+20%), ROE 16.6%, and ~61% one‑year TSR; FY2023 saw ~$6.4B revenue and ~68% one‑year TSR, with multi‑year improvements across revenues, pretax income, EPS, book value, and leverage .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| KB Home | Executive VP, Real Estate & Business Development | 2011–present | Led nationwide land pipeline and community growth; calibrated growth targets, accelerated openings, mentored land teams |
| KB Home | Various executive roles | 1994–2006 | Prior executive leadership; details not enumerated in recent filings |
| KB Home | Employee | 1989–1992 | Prior tenure at the company |
| Landstone Communities, LLC | Chief Executive Officer | 2006–2011 | Led real estate development business prior to rejoining KB Home |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Landstone Communities, LLC | Chief Executive Officer | 2006–2011 | Operated real estate development firm; relevant to land pipeline expertise at KB Home |
Fixed Compensation
| Component | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 650,417 | 675,417 | 700,417 (raised July 2024; annual to $715,000) |
| Perquisites (supplemental medical + life premiums) ($) | 12,641 | 12,623 | 12,623 |
| 401(k)/DCP Company Match ($) | 39,025 | 40,525 | 42,025 |
Performance Compensation
Annual Incentive (Cash; scorecard-based, API + asset efficiency)
| Metric | Target | Actual | Payout to Praw ($) | Notes |
|---|---|---|---|---|
| FY2023 Adjusted Pretax Income (API) ($mm) | 500.0 | 858.6 | 966,000 (API component) | Payout capped at 100% of target on API component |
| FY2023 Asset Efficiency Pool ($mm) | Min RO Inventory 3%; pool size ~18.8 | Funded per formula | 735,060 (asset efficiency) | IPF 3.9% for Praw |
| FY2024 Adjusted Pretax Income (API) ($mm) | 700.0 | 937.0 | 1,001,000 (API component) | Payout capped at 100% of target on API component |
| FY2024 Asset Efficiency Pool ($mm) | Min RO Inventory 3%; pool size ~19.2 | Funded per formula | 802,306 (asset efficiency) | IPF 4.2% for Praw |
Long-Term Incentives (PSUs; 3-year performance)
| Grant Year | Grant Date | Target PSUs (#) | Performance Period | Metrics & Weighting | Payout Range |
|---|---|---|---|---|---|
| 2023 | Oct 5, 2023 | 21,542 | Dec 1, 2023–Nov 30, 2026 | AEPS 40%, AROIC 35%, Rel. Revenue Growth 25% | 0–200% |
| 2024 | Oct 10, 2024 | 11,903 | Dec 1, 2024–Nov 30, 2027 | AEPS 40%, AROIC 35%, Rel. Revenue Growth 25% | 0–200% |
| 2021 (earned) | Feb 21, 2025 (certified) | 22,895 target | Dec 1, 2021–Nov 30, 2024 | AEPS, AROIC at max; Rel. Revenue ~55th percentile | Paid at 180%: 41,211 shares |
Relative revenue growth payouts: 200% at ≥75th percentile; 100% at median; 25% at 25th percentile; 0% below .
Stock/Option Activity and Vesting Realization
| Period | Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | Option Exercises (#/$) |
|---|---|---|---|
| FY2023 (2020 PSUs vested Feb 28, 2024) | 44,932 | 2,873,851 | — / — |
| FY2024 (2021 PSUs vested Feb 21, 2025) | 41,211 | 2,524,586 | — / — |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial Ownership (Feb 26, 2024) | 135,512 shares; no options within 60 days |
| Beneficial Ownership (Feb 24, 2025) | 124,346 shares; no options within 60 days |
| Ownership as % of outstanding | <1% (only CEO >1%) |
| Unvested/Unearned Awards (Nov 30, 2024) | Unvested: 41,211 (2021 PSU shares, vested in Feb 2025) ; Unearned targets: 29,880 (2022 PSUs), 21,542 (2023 PSUs), 11,903 (2024 PSUs) |
| Stock Ownership Guideline | 2x base salary; all NEOs in compliance |
| Hedging/Pledging | Prohibited for employees and directors |
| Deferred Compensation (DCP) Balance | $650,163 at FY2023; contributions $40,525; withdrawal $(238,777) |
| DCP Balance (FY2024) | $935,222; contributions $42,025 |
Employment Terms
- Severance (no CIC): 2.0x base salary + average bonus; health coverage up to 2 years; subject to release and post-termination non‑solicit (2 years), non‑disparagement, confidentiality . For Praw, scenario value example: $4,563,474 (as of 11/30/2023) .
- Change-in-control (double-trigger): Equity does not accelerate unless termination within 18 months; payouts determined by timing within performance period; severance 2.0x average base + bonus for NEOs; no excise tax restoration for NEOs per Board policy . For Praw, scenario value example: $4,449,307 (as of 11/30/2023) .
- Clawback: NYSE-compliant incentive compensation recovery policy updated in 2023 .
- Death Benefit Only (DBO) Plan: Participant; $1.0M death benefit plus tax restoration; CIC yields distribution of policy cash value plus tax restoration .
Performance & Track Record
- Land & community growth: Acquired ~12,400 lots in FY2024; increased lots owned/controlled to ~77,000; opened 106 new communities; ending community count +7% YoY .
- Pipeline/calibration: Set growth targets by submarket; aligned resources; recalibrated phasing to accelerate openings; mentored division land teams .
- Company outcomes (context): FY2024 revenues $6.93B (+8%), diluted EPS $8.45 (+20%), ROE 16.6%, debt-to-capital improved to 29.4%; one‑year TSR ~61% . FY2023: revenues $6.4B; one‑year TSR ~68% .
Compensation Committee & Say-on-Pay
- Compensation peer group: 2024 peers included Beazer, Lennar, NVR, Toll, D.R. Horton, M.D.C., Pulte, Tri Pointe, Hovnanian, Meritage, Taylor Morrison ; 2025 adjustments removed M.D.C. and added Century Communities, M/I Homes .
- Say-on-Pay support: ~80% in 2023; 81% in 2024; program refinements include cash payout limits and structured scorecards .
Compensation Structure Analysis
- High at-risk mix: PSUs are 100% of regular LTI; annual incentives formula-driven (API + asset efficiency) with IPF scorecards .
- Cash vs equity: Praw’s annual incentive paid entirely in cash in 2023 and 2024 (no restricted stock in lieu of cash), increasing near-term liquidity but maintaining long-term equity exposure via PSUs .
- Metric rigor: 3-year PSU goals increased over time; AEPS and AROIC thresholds/targets adjusted with market conditions; payouts 0–200% with clear relative growth scales .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited, reducing misalignment risk .
- Tax gross-ups: No new excise tax gross-ups for officers; NEOs (including Praw) do not receive 280G tax restoration under Board policy .
- Related party transactions: None in 2023; governance oversight detailed .
- Section 16 compliance: No late filings for executive officers noted (aside from unrelated director items) .
Investment Implications
- Alignment: Praw’s incentives link directly to pretax profitability and asset efficiency annually, and AEPS/AROIC/relative revenue growth over three years via PSUs—supporting disciplined land deployment and returns that are central to homebuilder value creation .
- Retention and succession: Age 75 with deep tenure and specialized land expertise; PSUs with multi‑year performance periods and severance protections reduce near-term turnover risk, but investors should monitor disclosures for leadership transitions in land acquisition functions .
- Trading signals: Significant PSU vesting events (Feb 2024 and Feb 2025) increased share delivery to Praw (44,932 and 41,211 shares, respectively); monitor Form 4 filings around vest dates for potential disposition activity and any selling pressure .
- Governance quality: Double-trigger CIC, clawback policy, ownership requirements, and hedging/pledging bans indicate solid governance; say‑on‑pay ~80–81% suggests investor acceptance of pay design .
Note: All figures and terms are drawn from KB Home’s 2025 and 2024 Proxy Statements and 10‑K executive officer disclosures; where specific education details are not disclosed, they are omitted per filings.