Saturday, July 16, 2016

Kindred's Executive Home Purchase Story Has Legs


The story behind Kindred Healthcare's strange purchase of CFO Stephen Farber's home in December 2015 continues to develop.  WDRB discovered Farber had moved from the home months earlier, casting doubt over Kindred's concerns regarding Farber's personal safety.  WDRB reported:

But records in a Jefferson County court case now show that Farber had already moved from the Glenview home months before he and his wife decided to sell it to Kindred in December.

The case also reveals the extent to which Kindred has committed its corporate resources to assist Farber in the ongoing dispute with his ex-neighbor, real estate investor David Fenley.

Last August, for example, it was Kindred that hired and paid the invoices of a land surveying and engineering firm that designed a new driveway on what was then Farber’s property. The driveway, now under construction by Kindred, could cost as much as $360,000 in all, according to a deposition.

Governance expert Nell Minnow weighed in on the home purchase by Kindred:

“There certainly can be no question of safety if he has already moved,” she said. “At the very least, it sounds deliberately misleading.”

Nell Minow is vice chair of ValueEdge Advisors which advises big investors on corporate governance issues.

John Stout, a Minneapolis lawyer who previously chaired the corporate governance committee of the American Bar Association, said the situation “obviously doesn’t reflect well on the company, and it doesn’t reflect well on how they explain this.”

Susan Moss, Kindred’s corporate spokeswoman, did not respond to a phone call and a set of emailed questions from WDRB. Moss has not responded to inquiries about the Farber home purchase since January.

Jan West, an attorney representing Kindred and Farber in the ongoing litigation over the driveway, also did not respond to a request for comment.

I can see the company is non-responsive to more than employee needs.   From pay to home purchases Kindred's new executive drive is clearly designed to benefit senior leaders.

Anonymous (from Kindred small fry)

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