KB Home's Board Is Serious About Quelling CEO Scandals

In this Market Foolery podcast segment, host Chris Hill and Motley Fool Asset Management's Bill Barker consider how an activist board reacts when an exec embarrasses the company. KB Home (NYSE: KBH) CEO Jeffrey Mezger was recorded unleashing a vulgar tirade at his neighbor, comedian Kathy Griffin, and the homebuilder's board didn't remotely laugh it off. But what was really on their minds when they censured him and cut his bonus by 25%?

A full transcript follows the video.

Source: Fool.com