Beazer Homes USA, Inc. under investor investigation concerning excessive executive payout

Feb. 14, 2011 - PRLog -- An investigation on behalf of current long term investors in Beazer Homes USA, Inc.  concerning possible breaches of fiduciary duty related to potential excessive compensation that was awarded certain senior officers and executives at Beazer Homes USA, Inc. was announced.

If you are a current long term investor in Beazer Homes USA, Inc.  stock and/or if you have any information relating the investigation including also whistleblowers and former employees, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Atlanta, Georgia based diversified homebuilder Beazer Homes USA, Inc just recently had their shareholders vote on the February 2 annual meeting over the management’s compensation proposal. The vote drew a 54 percent negative vote against the proposal.

The investigation by a law firm on behalf of current long term investors in Beazer Homes USA, Inc. (Public, NYSE-BZH) focuses on possible shareholder claims that certain of Beazer Homes USA, Inc’s senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.  

Even the 12months Total Revenue of Beazer Homes USA, Inc. decreased from $3.036billion reported on Sept 30, 2007 to $1.009billion reported on Sept 30, 2010, and shares decreased significantly its CEO lately earned in 2010 almost $7million in Total Compensation.

Shares of Beazer Homes USA, Inc. (Public, NYSE-BZH) traded during 2006 as high as $79.12 per share and decreased in 2007 to $7.11, in 2008 to $1.31 per share and in 2009 as low as $0.29 per BZH share. Since then BZH shares have regained some value and traded recently at $5.23 per share, but still less then 50% its value in 2008, only almost at 10% of its value in 2007, and less than 7% of its value during 2006.
Nevertheless the CEO of Beazer Homes USA, Inc. Ian J. McCarthy earned a Total Compensation in 2010 of $6,893,362 and in 2009, Mr. McCarthy received $6,430,253 in total compensation.
In 2009 a media report said the U.S. Securities and Exchange Commission might try to collect pay from its CEO under a section of the Sarbanes-Oxley Act that allows the government to claim compensation for years for which financial results were restated.
The media report said that Beazer Homes USA, Inc had restated its results for the years 1998-2006 and for the quarters ended Dec. 31, 2006, and March 31, 2007, after identifying several weaknesses in its internal controls over financial reporting.
Even though the SEC did not charge CEO McCarthy personally, the investigation by the law firm concerns whether the CEO can be held ultimately to some extend accountable.
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 USA, Inc’s 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.  The investigation by the law firm is also investigating claims that the prior compensation awarded at Beazer Homes USA, Inc. is improper based upon its current operating condition.
According RiskMetrics Group's ISS Governance Services unit, which reviewed also Beazer Homes USA, Inc’ executive compensation plan, said that Beazer Homes USA, Inc performed poorly relative to competitors and e company's stock performance has lagged against comparable companies ‘over a sustained period. RiskMetrics Group's ISS Governance Services unit said the value of a $100 investment in the company five years ago was worth only about $11 at the end of fiscal 2010.
Therefore the investigation focuses also on possible shareholder claims that would allow Beazer Homes  stockholders to more efficiently influence or control future compensation decisions at Beazer Homes USA, Inc.

Those who are current long term investors in Beazer Homes USA, Inc.  stock and/or those who have any information relating the investigation including also whistleblowers and former employees, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio legal monitoring service and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.