In some circles, the species homo executivus is seen as sensitive and in need of encouragement—especially during their most depressed states. For example, when their companies suffer colossal loss of profit. Then they must be rewarded copiously.

This must be the mindset behind D.R. Horton's decision to hand out lavish bonuses to its top two executives, despite a housing crisis and falling share price.

According to an S.E.C. filing made Wednesday, both Donald R. Horton, chairman, and Donald J. Tomnitz, president and C.E.O., will be each paid a handsome bonus of $1.59 million.

Why such a large package when D.R. Horton reported a yearly loss of $712.5 million and its shares have fallen from a high of $31.13 to a low of $10.15 in the last 52 weeks?

According to the Associated Press, the filing said the bonus amount was based on a percentage of pretax income, cash flow generation, and "actions and activities by each executive officer to contribute to stockholder value."

The filing also maintained that the performance metrics must balance "market conditions in the homebuilding industry" with "motivating our executives in an uncertain market."

D.R. Horton's shareholders may have lost out this year, but Horton and Tomnitz can sleep comfortably with their pay packages.

by Jennifer Lai