Homebuilder Executive Pay Suffers Housing Slump Backlash - Housing Tracker

Includes: CFC, RYL, WCIM
by: Judy Weil

Homebuilder Executive Pay and Perks

More Firms Are Cutting The Perks. “Many companies have been cutting back on executive benefits… Ryland Group (NYSE:RYL) lost $334 million [in 2007]… As a result, Chairman and CEO R. Chad Dreier's cash and stock-based pay was slashed to $5.1M last year from $20.9M in 2006. But Dreier’s… other pay increased last year, totaling $9.1M. That included a $4.7M boost to his retirement plans, an $80,000 allowance for "personal health and services," $47,000 in life insurance premiums paid, $15,600 in personal flights on the company plane and $9,136 in medical reimbursements. His "other" pay also included more than $4M in cash to offset income tax Dreier owed on his perks.” (LA Times, May 25th)

Southwest Florida Ceos Feel Pinch After Stocks Take Dive. “Jerry Starkey, CEO of WCI Communities Inc. (WCI), was the second highest-paid executive in 2006 with a salary of $2.5 million. The company has yet to file a proxy statement for 2007. Arletta Banas, a WCI shareholder [who] regularly pores over proxy statements: “Their salaries are comparable to others, but other companies have performed better. I would hope WCI would use integrity when it comes to bonuses and it would do what other companies have done.” The luxury homebuilder reported a loss of $84M in Q1… Starkey’s compensation was heavily weighted in stock and options.” (News Press, May 25th)

Ranking Executive Pay. “LA Times annual executive pay survey: California companies paid, on average, 10% less to its CEOs in 2007. But many of the numbers among the list of 100 are still huge… The CEO at homebuilder Ryland Group took a 55% pay cut, and even Countrywide (CFC) CEO Angelo Mozilo was at $10.8 million, compared with $48.1M a year earlier (although he made a bunch more through stock gains that weren't included). LAT: “State laws and corporate bylaws are being changed to make it easier for disgruntled shareholders to oust directors who are willing to approve outsize pay packages.” (LA Biz Observed, May 24th)

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