Lennar CEO Miller Forfeits $9.95 Million Stock and Options for Homebuilder's Money-Losing 2007 
Lennar Corp.'s chief executive could have earned more than $11 million in compensation in 2007 but forfeited $9.95 million of it because the homebuilder failed to meet financial goals amid the troubled housing market, an Associated Press analysis of company filings showed. Stuart Miller received $1 million in salary and $130,397 in other compensation that included $96,000 in dividends, $26,547 in car lease payments, a $6,750 matching payment for his 401(k) and $1,100 in life and disability insurance, according to the company's proxy statement with the Securities and Exchange Commission.

Lennar CEO Forfeits $9.95 Million

Tuesday April 8, By Adrian Sainz, AP Business Writer

The proxy had been sent to shareholders, who voted Tuesday on five proposals at the Miami-based company's annual meeting.

Miller was granted $9.95 million in stock and option awards on Feb. 27, 2007, but later forfeited that amount because the homebuilder fell short of profit goals. The $11.1 million value of Miller's total compensation became $1.1 million without the stock and option awards.

Miller received no bonus for 2007 -- a bad year for the housing market and Lennar, which posted record losses in the third and fourth quarters. Lennar reported a $1.9 billion loss for all of 2007.

The proxy included a shareholder proposal to limit the company's executive pay, which failed. In response, the company said, "In fact, this year three of our named executive officers forfeited significant equity grants as a result of the Company's failure to achieve certain financial performance goals and no cash bonus was paid to our CEO as a result of the Company's failure to earn a profit for the fiscal year."

For the year that ended Nov. 30, 2007, Lennar's losses equated to $12.31 per share, compared with profits of $593.9 million, or $3.69 per share, in 2006. The company cut its work force by more than 50 percent last year.

Miller said he foresees continued softness in the market, and possible deterioration, though 2008. But Lennar has adjusted its property and land values, generated cash by selling land, and sold homes in inventory by lowering prices and offering incentives -- efforts to weather the housing troubles and prepare the homebuilder for whenever the market stabilizes, Miller said.

In 2006, Miller received compensation the company valued at $5.7 million, but his bonus dropped almost $16.8 million from 2005 as earnings fell significantly as the housing market began its two-year swoon.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation, and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals released by the companies.

Outside the meeting, about 20 union members protested a bill to ease the housing crunch -- specifically a provision to allow lenders and homebuilders who profited earlier in the decade but are losing now money to reclaim taxes paid up to four years ago. The provision would award $25 billion to money-losing businesses through 2010.

"I'm trying to make a statement that I think taxpayers should not have to bail out corporations," said Paul Price, 38, who was trying on a pink and white pig suit before the protest.

The Laborers' International Union of North America, which represents construction workers, plans similar protests at future meetings of homebuilders, including Calabasas, Calif.-based The Ryland Group Inc. and Denver-based M.D.C. Holdings Inc.
http://biz.yahoo.com/ap/080408/lennar_executive_compensation.html?.v=3