The top two executives at Fort Worth-based home builder D.R. Horton took home less pay this year, with the biggest decline coming in the value of stock and option awards, according to the company’s annual proxy statement.
Chairman Donald Horton’s total compensation was $11.7 million in fiscal 2014, which ended Sept. 30, $492,129 less than last year. CEO Donald Tomnitz, who retired Sept. 30, received $9.3 million, down $1.1 million.
In fiscal 2013, the executives received sharply higher incentive awards based on the company’s pretax income in a much-improved housing market. The housing market continued to improve in fiscal 2014, and the company reported $814.2 million in pretax income, a 23.7 percent increase from fiscal 2013.
In fiscal 2014, Horton, 64, and Tomnitz, 65, each received $4.88 million in cash incentives. Their base salary has remained the same since 2012, with Horton receiving $1 million and Tomnitz receiving $900,000, according to the proxy. Horton will continue to receive a $1 million base salary in fiscal 2015.
Chief Operating Officer David Auld, 58, who was named in October to succeed Tomnitz as president and CEO, received a pay increase as a result of the promotion, but his annual salary will be less than Tomnitz was making.
Auld was paid a $500,000 base salary as COO and will now receive $700,000, which is at the lower end of the base salaries for his industry peer group, the proxy said.
“We believe his fiscal 2015 salary is at a competitive level of fixed compensation to incent and retain his services as our CEO,” the proxy said.
Auld’s total compensation in fiscal 2014 was $3.3 million after stock and option awards and other incentives, including a $2 million cash bonus, the proxy shows.
In fiscal 2014, the company closed sales of 28,670 homes, up nearly 19 percent from the year before. Home-building revenue was $8 billion, up from $6.3 million in fiscal 2013.
The company will hold its annual meeting Jan. 22 at its headquarters in downtown Fort Worth.
Sandra Baker, 817-390-7727