Monday, January 25, 2016

Kindred Covers CFO Conflict with Money Shower


A division of Kindred recently purchased the home from CFO Stephen Farber due to conflicts with his neighbors over a shared driveway.  A Louisville newspaper chronicled the series of skirmishes.
In a dispute that eight attorneys from three law firms have been unable to resolve, three business titans in Glenview, one of America’s richest cities, have fought over a driveway that for decades had been peaceably shared.

The biggest casualty of the Battle of Glenview Avenue is a grove of majestic trees that were cut down and bulldozed last month, to the chagrin of neighbors, who say about 40 trees and 2,000 years of growth were destroyed.

“At a time in which Louisville is trying to amplify its tree canopy, this kind of evisceration is sad and upsetting,” said Jay McGowan, the president of Bellarmine University, who lives next door in a mansion donated to the school.

“You would hope that adults could do better,” he added.
On Dec. 18, the Farbers sold their house and property for $2.15 million to a company owned by his employer, Kindred.

Eleven days later, the trees came down at the company’s direction.

Kindred and its spokeswoman, Susan Moss, declined to respond to emails, but the company apparently decided it had to build a new drive to the home so it could be sold to a future purchaser.
The article described Farber as "the $910,000-a-year executive vice president and chief financial officer of Kindred Healthcare."  It also cited "massive” renovation of the Farbers' $1.7 million home."  Zillow indicated the home last sold for $1.7 million on April 1st, 2014.  A building permit indicated a $150,000 renovation for 2,100 square feet of the 6,000 square foot home.
A Kindred company paid $300,000 more than $1.85 million Farber spent to buy and renovate their home.  The purchase came in December, after Kindred gave Farber a one time $250,000 payment to aid in his relocation.  There was no SEC filing on the company buying his house at a significant premium just weeks later.

Apparently boards finance multiple moves as Farber, the recipient of nearly $1.9 in executive pay in 2014, received $110,000 of that amount for relocation expenses.
Did this topic arise in the question and answer session at J. P. Morgan's recent healthcare conference.  If so, did any analysts ask how much Kindred got for the lumber?

Anonymous (from Kindredful)

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