The improved housing market translated to bigger pay packages for the top two executives at Fort Worth-based D.R. Horton.
Chairman Donald Horton’s total compensation was $12.2 million in fiscal 2013, which ended Sept. 30, more than double what he received in fiscal 2012, according to the company’s annual proxy statement. Chief Executive Officer Donald Tomnitz’s compensation was $10.4 million, a 97.6 percent increase from the prior year.
The executives received sharply higher incentive awards based on the company’s pretax income, which rose nearly 171 percent in fiscal 2013 — and they could have received more, the proxy said. The value of stock and option awards given the executives was also more than double the year before, the proxy shows.
D.R. Horton reported $657.8 million in pretax income for the fiscal year. Under its compensation policy, the two executives could have received cash payments of $6.57 million, or 1 percent of that figure. Instead, each received 0.75 percent, or $4.91 million. The compensation committee said it looked at short-term and long-term compensation earned and paid in fiscal 2013 in reducing the amount, the proxy said.
In fiscal 2012, the executives received $2.43 million in cash incentives.
The executives’ base salary was unchanged in fiscal 2013, with Don Horton receiving $1 million and Tomnitz receiving $900,000, the proxy shows. Horton received $6.2 million in stock awards and options and other compensation to bring his total to $12.2 million. Tomnitz received $4.6 million in stock awards and options and other compensation to bring his total to $10.4 million.
In fiscal 2013, Horton closed sales on 24,155 homes, up nearly 28 percent from the year before. Homebuilding revenue was $6.3 billion, up from $4.4 billion the year before. The company’s will hold its annual shareholder meeting on Jan. 23 in Fort Worth.