Paul J. Borden, has served as a director and President of HomeFed Corp (HOFD-$47.00), a developer of residential real estate projects in Southern California, specifically in the San Diego area, since May 1998. Although executive offices are in Carlsbad, California, located thirty miles north of San Diego, Borden maintains his primary residence in New Jersey.
In 1998, Borden, then a Vice-President of Leucadia National Corp (LUK-$48.43), signed an Administrative Services Agreement to steward the San Elijo Hills project, a master-planned community in San Diego County, California, of approximately 3,400 homes and apartments as well as commercial properties.
Leucadia, a holding company with interests in a broad range of businesses, from gaming entertainment to timber, plastics and prepaid calling services, owns 29.9% of HomeFed.
HomeFed and Leucadia are developing a 700-acre non-adjoining acres of land located within the larger 22,900 acre Otay Ranch master-planned community south of San Diego, California, too.
All my bags are packed,
I'm ready to go
I'm standing here outside your door
I hate to wake you up to say goodbye
But the dawn is breakin, its early morn
The taxis waiting, hes blowin his horn
Already Im so lonesome I could cry.
HomeFed maintains a "temporary residence" in California and reimburses Borden for airfare to and from his primary residence, according the Company’s annual proxy filing. Albeit the definition of temporary is "lasting or existing only for a short time," the real-estate concern arranged this temporary allowance starting in 2002—first detailing the remuneration in its 2005 proxy statement.
So kiss me and smile for me
Tell me that youll wait for me
Hold me like youll never let me go.
I'm leavin on a jet plane
I don't know when Ill be back again
Oh, babe, I hate to go. ~ Folk singers Peter, Paul & Mary
For 2007, Borden received $29,838, $43,787, and $62,579, respectively for his housing allowance, airfare to and from his primary residence in New Jersey, and tax-gross-ups.
Unlike the lyrics in the song, Borden knew when he’d be back home again—more times than he left!
HomeFed is not immune to the turmoil in the mortgage markets. The Company estimated that total home sales (both new and re-sales) at the San Elijo Hills project were approximately 227 in 2007 and 300 in 2006, as compared to 470 in 2005 and 860 in 2004. In addition, HomeFed has not sold any new residential lot sales at the San Elijo Hills project or Otay Ranch since June 2006.
As business is non-existent these days, why even bother flying Borden back and forth from New Jersey?
Given Borden’s past history with Leucadia, the 10Q Detective can understand the disingenuous housing allowance perquisite. The $307, 000 paid to Borden in cash bonuses for each of fiscal 2006 and 2007—now that’s a blatant disregard for shareholder common interests.
Editor David J. Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.
David, you got the ticker wrong. It is HOFD (OTC).
ReplyDeleteMichael:
ReplyDeleteThank You--I fixed the symbol.
Best-David
While Business and Family are two separate entities, it would have been nice if you had all of your facts and data correctly catalogued. In those past five years, I'd say many involved in all the diverse facets and postures of Real Estate, would say, or at least agree, he has done quite a remarkable job managing those interests in what appeared to be a "Nationally Doomed" market. Which finally, is on the rise again. In comparison, to the many others, who lived off the intentional mismanagement of others, or stretched the ignorance of investors to dine on fine China, and sip some crisp Gerwurztraminer with their Stinking Bishop. This mans first priority, has, and will always be, either the lonely green, penny pinching wandering capitalist, or mindfully grand, savvy panjandrum. I'd say, in terms of Real Estate, where most lost money, HomeFed did not only quite well, but outperformed it's competitive peers. And after your thorough homework, and years of follow up analysis, you see he was the right man for the job all while simultaneously managing the healthcare of one of his sons who was diagnosed with Myxopapillary Ependymoma , Cancer of the Spine, which comes with a hefty mortality rate of 96%. He currently has full mechanical and nerve utility and is an Entertainment Manager in Santa Monica.
ReplyDeleteWhile Business and Family are two separate entities, it would have been nice if you had all of your facts and data correctly catalogued. In those past five years, I'd say many involved in all the diverse facets and postures of Real Estate, would say, or at least agree, he has done quite a remarkable job managing those interests in what appeared to be a "Nationally Doomed" market. Which finally, is on the rise again. In comparison, to the many others, who lived off the intentional mismanagement of others, or stretched the ignorance of investors to dine on fine China, and sip some crisp Gerwurztraminer with their Stinking Bishop. This mans first priority, has, and will always be, either the lonely green, penny pinching wandering capitalist, or mindfully grand, savvy panjandrum. I'd say, in terms of Real Estate, where most lost money, HomeFed did not only quite well, but outperformed it's competitive peers. And after your thorough homework, and years of follow up analysis, you see he was the right man for the job all while simultaneously managing the healthcare of one of his sons who was diagnosed with Myxopapillary Ependymoma , Cancer of the Spine, which comes with a hefty mortality rate of 96%. He currently has full mechanical and nerve utility and is an Entertainment Manager in Santa Monica.
ReplyDeletePanjandrum as in influential. He is one who always put company first. Shareholders and employees. I think the guy deserves some understanding and credit. wouldnt anyone travel so much to help a child with cancer? Who is still recovering? No ethics or morals should be questioned. He is a great man, and that writing of yours devastated me. you need to know all to pass judgment or opinion
ReplyDeletesorry for the multiples. computer wasnt sending confirmations
ReplyDelete