Robert McGibney
KB HOMEAbout Robert McGibney
Robert V. “Rob” McGibney is President and Chief Operating Officer of KB Home, promoted effective February 1, 2024, after serving as EVP & COO since 2022 and Co-COO in 2021–2022; he joined KB Home in 2000 and was age 50 as of December 31, 2024 . He is a career operator with deep field experience (division, regional, and national roles) who led material execution improvements in 2024, including a 28% reduction in average build times, ~$2.8B of land investment to expand future community openings, and sustainability leadership (HERS Index 45 achieved a year early), contributing to KB Home’s 2024 performance (revenues $6.93B, +8%; EPS $8.45, +20%; ROE 16.6%; one‑year TSR ~61%, 75th percentile of peers) . He continues to direct company-wide operations and key strategic functions (architecture, design studio, marketing, national contracts, sustainability, financial services) and has emphasized surgical pricing over incentives and cost discipline in 2025 commentary .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| KB Home | President & Chief Operating Officer | 2024–present | Directs operations and strategy; leads architecture, design studio, marketing, national contracts, sustainability and financial services . |
| KB Home | EVP & Chief Operating Officer | 2022–2024 | National operations leadership; sustained growth initiatives . |
| KB Home | Executive Vice President & Co‑Chief Operating Officer | 2021–2022 | Shared national operating responsibility . |
| KB Home | Regional President | 2018–2021 | Oversight of California plus AZ/NV footprint, scaling communities . |
| KB Home | Regional General Manager (AZ & NV) | 2016–2018 | Expanded regional portfolio and execution . |
| KB Home | Division President, Las Vegas | 2012–2016 | Ran division P&L; led land, purchasing, operations . |
| KB Home | SVP/EVP (Las Vegas division roles) | 2000–2012 | Progressively led land development, purchasing, ops . |
| KB Home | Financial Analyst (Las Vegas) | 2000 | Entry into homebuilding, analytics foundation . |
External Roles
No external directorships or public-company board roles disclosed for McGibney .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base salary ($) | 770,833 | 820,833 | 891,667 (annualized $900,000 after Feb 2024 promotion) |
| Target annual bonus (% of salary) | — | — | 175% (COO) |
| All other compensation ($) | 59,308 | 62,281 | 66,531 |
Additional updates:
- Base salary increased to $930,000 effective July 1, 2025 .
- Perquisites and benefits: 401(k) and Deferred Compensation Plan matching contributions ($53,500 in 2024) and supplemental medical/life premium payments ($13,031 in 2024) .
- Deferred Compensation: 2024 contributions $53,500; company match $32,800; 2024 earnings $173,551; ending balance $939,785 .
- Pension/SERP: Not a participant in the frozen Retirement Plan (no defined benefit accruals) .
Performance Compensation
Annual Incentive – Structure and 2024 Outcome
- Plan design: Formulaic adjusted pretax income (API) component (pays up to 100% of target) plus asset efficiency pool funded above a ROInventory hurdle; individual allocation guided by scorecard and Individual Performance Factor (IPF) .
- 2024 API target $700.0M; actual API $937.0M (134% of target); API component capped at 100% of target .
- Asset efficiency pool funded up to ~$19.2M; McGibney scorecard points 18.5 with IPF 11.5% .
- Key 2024 contributions: build time -28% YoY; ~$2.8B land investment (+58% YoY) to support community openings; targeted pricing and programs to sustain orders/backlog; led Sustainability Leadership Team achieving HERS 45 target a year early .
| 2024 Annual Incentive (USD) | Amount |
|---|---|
| API component payout | 1,575,000 |
| Asset efficiency component payout | 2,193,968 |
| Total payout | 3,768,968 (paid entirely in cash) |
Scorecard dimensions and goals (financials, execution, strategic planning, leadership) informed the IPF range and award .
Long‑Term Incentives (PSUs)
- Vehicles: 100% performance‑based RSUs (PSUs) for NEOs since 2012; 3‑year performance period; payout 0–200% of target; dividend equivalents paid in cash proportional to shares earned .
- Metrics/weights: Cumulative Adjusted EPS (40%); Average Adjusted ROIC (35%); Relative Revenue Growth vs peer group (25%) .
- Goal rigor: AEPS and AROIC threshold/target/max levels generally increased over time; 2024 PSU AEPS target $15.50 and AROIC target 9.4% for the 2025–2027 cycle .
| PSU Grants (Target shares) | 2022 Grant | 2023 Grant | 2024 Grant | 2025 Grant |
|---|---|---|---|---|
| Granted (target #) | 66,401 | 51,020 | 37,589 ($2,999,978 grant-date fair value) | 60,774 (Oct 9, 2025) |
| Performance period | 2023–2025 | 2024–2026 | 2025–2027 | 2026–2028 |
Recent vesting:
- 2021 PSU cycle paid at 180% of target; McGibney received 91,580 shares on certification Feb 21, 2025; value realized on stock vesting reported alongside others .
Vesting/forfeiture features:
- Double‑trigger vesting on CIC with target or prorated payouts depending on cycle year; death/disability acceleration; retirement prorated where eligible; time‑vesting restricted stock not used in his 2024 annual incentive (cash only) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (Feb 24, 2025) | 112,966 shares; stock options exercisable within 60 days: 34,621 . |
| Ownership as % of SO | ~0.16% of 71,447,228 shares outstanding (none of the NEOs >1%) . |
| Options (exercisable) | 14,000 @ $14.92 exp. 10/8/2025; 20,621 @ $16.21 exp. 10/6/2026 . |
| Outstanding PSUs at 11/30/24 (target) | 2022: 66,401; 2023: 51,020; 2024: 37,589; total 155,010; aggregate target market value reflected at $82.74 per share . |
| 2024 equity vesting/exercises | 91,580 shares from 2021 PSUs; options exercised 14,781; value realized on vesting $5,610,191 . |
| Stock ownership guidelines | COO: 3.0x base salary; all NEOs in compliance . |
| Hedging/pledging | Prohibited (no short sales, derivatives; no margin or pledging) . |
| Deferred Compensation Plan balance | $939,785 at 11/30/2024 . |
Employment Terms
| Provision | Terms (McGibney unless noted) |
|---|---|
| Severance (without cause/for good reason) | 2.0x sum of base salary in effect and average cash bonus (3‑year look-back, capped as defined) plus up to 24 months health coverage; subject to release and 2‑year non‑solicit, non‑disparagement, confidentiality . |
| Change‑in‑Control (CIC) | Double‑trigger; if terminated not for cause or for good reason within 18 months post‑CIC: 2.0x average base + average actual cash bonus (3‑year look-back); equity per award agreements (target/prorated) . |
| Equity in CIC/death/disability/retirement | Double‑trigger acceleration upon qualifying termination; death/disability accelerate; retirement prorated where eligible; time‑vesting restricted stock accelerates on death/disability . |
| Clawback | Incentive‑based compensation recovery policy updated in 2023 consistent with NYSE listing standard . |
Scenario values (as of 11/30/2024; stock at $82.74):
- Involuntary termination without cause/for good reason: Severance $7,200,000; health benefits $78,216; total $7,278,216 .
- CIC with qualifying termination: Severance $7,337,080; PSUs $17,680,803; total $25,017,883 .
- Death/disability: PSUs $21,143,170 .
Compensation Structure Analysis
- Mix and trajectory: 2024 total compensation $7.73M (vs. $6.86M 2023; $6.49M 2022), with higher PSU grant value in 2024 ($2.999,978) and a consistent, formula‑driven annual incentive ($3.77M) tied to API and asset efficiency; base salary increased to $900k in Feb 2024 and to $930k effective July 1, 2025 .
- Metrics rigor: 2024 annual plan raised API target to $700M (from 2023 target), actual $937M; above‑target requires asset efficiency hurdle; PSUs tied to AEPS/AROIC and relative revenue growth with increasing targets over time .
- Governance: 100% PSU LTI for NEOs; hedging/pledging prohibited; ownership guidelines in compliance; clawback policy in place; independent compensation consultant (FWC) engaged by committee .
- Say‑on‑Pay: 81% support at 2024 annual meeting, improved vs prior year; program changes reflected shareholder feedback (cash payout caps; scorecard; more equity alignment) .
Equity Grants and Vesting Schedules
| Grant type | Grant date | Shares (#) | Fair value ($) | Vesting |
|---|---|---|---|---|
| PSUs (2024) | Oct 10, 2024 | 37,589 | 2,999,978 | Performance 12/1/2024–11/30/2027; 0–200% payout; dividend equivalents proportional to shares earned . |
| PSUs (2025) | Oct 9, 2025 | 60,774 | — | Performance 12/1/2025–11/30/2028; 0–200% payout; same metrics/weights . |
| Options (exercisable) | Oct 8, 2015 | 14,000 | — | Strike $14.92; expire 10/8/2025 . |
| Options (exercisable) | Oct 6, 2016 | 20,621 | — | Strike $16.21; expire 10/6/2026 . |
Performance & Track Record
- Company performance under the senior team (including McGibney) in 2024: revenues $6.93B (+8%), pretax income $850.9M (+10%), net income $655.0M (+11%), EPS $8.45 (+20%), ROE 16.6%; one‑year TSR ~61% (75th percentile) .
- Execution in 2024: 106 new community openings; average build times down 28% YoY; ~$2.8B land investment (+~60% YoY) lifting lot position to ~77,000; customer satisfaction highs; dividend raised 25% .
- 2025 commentary: surgical pricing over incentives; continued cost reductions (~3.2% cited broadly across inputs); local market focus; some community opening delays in Q2 2025 impacted “a couple hundred” sales .
Equity Ownership & Alignment (Detail)
| As of Feb 24, 2025 | Value |
|---|---|
| Beneficial ownership (shares) | 112,966 |
| Options (exercisable in 60 days) | 34,621 |
| Ownership % of SO | ~0.16% (112,966 / 71,447,228) |
| DCP balance | $939,785 |
| 2024 vesting/exercises | 91,580 PSU shares vested; 14,781 options exercised; $5,610,191 vesting value |
| Ownership policy | 3x salary guideline for COO; compliant |
| Hedging/pledging | Prohibited |
Employment Terms (Detail)
| Scenario (11/30/2024) | Cash severance | Equity treatment | Health benefits | Total |
|---|---|---|---|---|
| Involuntary termination (no cause/good reason) | $7,200,000 | PSU values not included; time‑vesting N/A; plan terms apply | $78,216 | $7,278,216 |
| CIC + qualifying termination | $7,337,080 | PSUs $17,680,803 (per award rules) | — | $25,017,883 |
| Death/Disability | — | PSUs $21,143,170 | — | $21,143,170 |
Compensation Committee, Peer Group, and Say‑on‑Pay
- Committee and consultant: Management Development and Compensation Committee chaired by Jodeen A. Kozlak; advisor Frederic W. Cook & Co., Inc. (FWC), deemed independent .
- Peer group: Beazer, Century, D.R. Horton, Hovnanian, Lennar, Meritage, NVR, M/I Homes, Pulte, Taylor Morrison, Toll, Tri Pointe (adjusted for MDC acquisition) .
- Say‑on‑Pay: 81% support at 2024 annual meeting; program refinements included cash payout caps and scorecard framework .
Investment Implications
- Alignment: High—100% PSU long-term incentives, strong ownership requirements (compliant), hedging/pledging prohibited, and a formal clawback reduce misalignment risk .
- Retention risk: Moderate—meaningful unvested PSUs across 2022–2025 cycles and competitive severance/CIC protections support retention; 2025 base raise to $930k underscores importance of role .
- Selling pressure: Near term, 2021 PSU vest (91,580 shares) and option expirations (2025/2026) could create episodic liquidity, though policy prohibits pledging/hedging and ownership guidelines constrain net disposals until met .
- Execution levers: Emphasis on cycle-time reduction, surgical pricing vs incentives, and land pipeline positioning are central to margin and revenue trajectory, but community opening timing and local market dynamics remain key risks to quarterly volatility .