The top executives of the country’s 13 largest home-building corporations saw a 37 percent jump in their salaries last year, thanks to increased sales and production of new homes.
Stockholders, on the other hand, didn’t fare as well.
Stuart Millar, the CEO of Lennar, topped the list with $13.6 million. Larry Mizel, the CEO of MDC Holdings came in second with $12.2 million, followed by PulteGroup CEO Richard Dugas with $10.5 million.
The median compensation for the chief executive officers in the home-building sector was almost $7.9 million in 2013. This includes base salary, bonuses and long-term incentive grants. While higher than the year before, total comp was still much less than the peak in 2005, when the median was $11.3 million.
Builders sold 429,000 homes last year, a 17 percent increase from 2012 and a 40 percent increase from the historic dip of 306,000 in 2011. Share prices of building stocks lagged behind the rest of the stock market. Returns for the shareholders rose 13 percent in 2013, compared to a 32 percent gain a year earlier. [WSJ] – Claire Moses