A C.E.O. Feels His Shareholders' Pain

Unclear whether this is a trend or just a blip on the compensation screen, but Lennar Corp.'s chief executive forfeited his $9.95 million bonus because the homebuilder did not meet its profit goals.

Like other builders, Lennar, the third largest in the country, is struggling in the sagging housing market. The company, based in Miami, reported a $1.9 billion loss for 2007.

Last year started out much sunnier. In February, the company's board granted C.E.O. Stuart A. Miller a restricted stock bonus worth $9.95 million — in addition to his salary (and perks — see below).

But as the Associated Press found, company filings distributed at today's annual shareholders meeting show that Miller received no cash bonus "as a result of the company's failure to earn a profit for the fiscal year."

Also, Lennar's proxy said three top officers "forfeited significant equity grants as a result of the company's failure to achieve certain financial performance goals."

There was no immediate comment from Lennar on Miller's compensation, although the company's proxy statement shows that he still owns 68 percent of Lennar and did receive his $1 million salary, $96,000 in dividends on restricted stock the company already holds in his name, $26,547 in auto lease payments, and assorted other benefits.

Shareholders, on the other hand, lost 56 cents per share in the first quarter of this year, as Lennar's revenues from home sales plunged 64 percent.

Still, at least Lennar didn't follow the example of rival Toll Brothers.

Robert I. Toll, the C.E.O. of that Horsham, Pennsylvania, homebuilder also went without a bonus in 2007. But the company changed its bonus criteria in the future so that they won't be contingent on boring old metrics like, say, profits.

by Elizabeth Olson

This item was amended to make clear that Lennar didn't follow Toll Brothers' lead in executive compensation. —Editor

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