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Forbes defined total compensation “as salary and bonus plus ‘other’ compensation, which includes vested restricted stock grants and “stock gains,” the value realized from exercising stock options during the just-concluded fiscal year.” The CEOs on this year’s list reportedly received an aggregate 54% pay raise last year with their total compensation amounting to $5.1 billion.The magazine also ranked 189 CEOs (who have been in office for six years or longer) on their performance, by looking at their average six-year total compensation and comparing it to long-term stock performance of industry peers as well as the overall stock market. Another mortgage-related CEO Forbes ranked within the nation’s top 10 was Capital One Financial’s Richard Fairbank, who was one spot below Mozilo with annual compensation of $56.66 million. The 55-year-old Stanford University graduate owns about $63.3 million of the company of which he has been part of for 17 years and occupied its CEO position for the past 11 years. Performance-wise, the Capital One executive ranked No. 152 — based on his six-year compensation average of nearly $38 million, as well as the 6-year annual total return to shareholders of 6%, returns of 93% over that time frame within the diversified financials industry and 107% within the overall stock market, the magazine said. Richard Kovacevich of Wells Fargo, was reportedly the 12th-highest paid CEO, with $53.1 million in compensation. The executive owns $108 million of the San Francisco-based banking behemoth, which was the second largest originator last year with reported fundings of $298 billion. Rounding out the 25 top-paid mortgage-related CEOs were: Robert Toll, who placed 13th with $50.2 million in annual compensation as CEO of luxury homebuilder Toll Brothers, which finances mortgages through its subsidiary Westminster Mortgage; Richard Fuld Jr. of Lehman Brothers Holdings, 19th with $40.1 million; followed by Bruce Karatz of KB Home with $38.8 million, US Bancorp’s Jerry Grundhofer, with $38.6 million; and Dwight Scar of homebuilder NVR at No. 24 with $38.2 million, according to the magazine. The top 50 reportedly included William Foley of Fidelity National Financial at No. 32 with $33.9 million; Philip Purces of Morgan Stanley with $33.7 million, Jay Sugarman of Star Financial with $32.9 million; Bear Stearns Cos.; James Cayne with $26.3 million; and Henry Silverman of Cendant placed 49th with nearly $24 million. Amongst the top 100 were Stuart Miller of Lennar, 64th with $19.1 million; JPMorgan Chase’s William Harrison Jr. with $18.8 million; Kenneth Chenault of American Express with $18.8 million; Bruce Hammonds of MBNA, 72nd with $17.4 million; Robert Wilmers of M&T Bank with $16.4 million, Washington Mutual’s Kerry Killinger came in 83rd with $15.7 million; Timothy Eller of Centex was 88th with $14.2 million; and closing out the segment at No. 99 with $13.4 million in compensation was Ara Hovnanian of Hovnanian Enterprises, the magazine said. Way down at No. 318 with compensation of $3.2 million last year was reportedly Robert Cole of subprime-lending New Century Financial, which he founded in 1995. However, Forbes named Cole the best-performing CEO. “Investors should wish they had more executives like [him] working for them,” the magazine said, noting that since the real estate investment trust went public in 1997, Cole has delivered a 25% compound annual return to shareholders. “For this he gets a paycheck that has averaged $1.6 million a year over the past six years.” Within the top five worst-performing CEOs were two mortgage-related executives: Thomas Renyi of Bank of New York placed third and Martin McGuinn of Mellon Financial was fifth, Forbes said. |
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Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.email: s3celeste@aol.com |
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