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Homebuilder CEOs take pay cuts

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MIAMI -- Stuart Miller, Lennar Corp.'s chief executive, was promised 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.

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.

The proxy was given out Tuesday at the Miami-based company's annual shareholders meeting.

Pulte Homes Inc. (NYSE: PHM) CEO Richard Dugas earned $6.5 million in 2007, about half of what he earned in the previous year, because he did not receive a performance-based bonus as the company did not meet its targets for earnings per share or return on equity.

According to a proxy statement filed with the Securities and Exchange Commission Monday, Dugas received $1 million in 2007 base salary.

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 Miler'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.

Besides his salary, Pulte's Dugas also received $82,397 in other compensation, including $50,400 for dividends paid on restricted shares, $11,562 for financial planning services, $1,793 for his wife's travel needs and $9,000 in company matches for his 401(k) retirement plan.

The rest of his compensation came in the form of stock and stock options, which were valued at about $5.3 million when granted. In 2006, Dugas received a performance-based bonus of $5.8 million.

The company will hold an annual shareholders meeting on May 15 in Birmingham, Mich.

Lennar's (NYSE: LEN) proxy included a shareholder proposal to limit the company's executive pay. 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."

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.

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 35 percent last year.

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.

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