Friday, June 9, 2017
Kindred Sells CFO Farber Home for Huge Loss
Kindred Healthcare executives remained mum on their bad investment in high end Louisville real estate. Kindred flipped the luxury home for a loss of at least $250,000. Kindred CFO Stephen Farber owned the house and benefited financially from his employer's largess.
Ferber received $300,000 more than the cost of the home and subsequent renovations. His $250,000 in extra moving expenses came on top of $110,000 Kindred paid for Farber's 2014 relocation. I'll venture Mr. Farber avoided realtor fees on the $2.15 million Kindred paid for the house, a benefit of roughly $125,000. Add it up and Farber got an extra $675,000 from his employer for not getting along with his neighbor.
Kindred paid dearly for the deal, the flip loss of $250,000 and the second moving expense benefit of $250,000. The unknown variable is the cost of the driveway, estimated as high as $360,000. Kindred is out realtor fees of $125,000, bringing the Farber anger management subsidy to almost $1 million.
This exercise in executive enrichment should become a business ethics case at the University of Louisville. I suggest it be studied parallel to the next Kindred executive flip. Will it just be the nursing home division or will top dogs sell the whole company? The time is nearing for news. I hope it's not as disturbing as this toxic saga.
Anonymous (from the Kindred level with no raises and declining benefits)