Company: LEN
Filing Date: 2025-02-28
Form Type: DEF 14A
Source: 0001193125-25-040938
Chunk: 19

Company: LENNAR CORP /NEW/
Filing Date: 2025-02-28
Form: DEF 14A
Chunk 19
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 warranty, our Multifamily business, our financial services business, associate retention and human resources, legal (including regulatory and compliance issues), information technology (including cybersecurity), taxation and strategic investments. Our Board of Directors also asks for and receives reports on other risks that affect the Company after review of business presentations made during regular Board meetings. In addition, one of the responsibilities of our Audit Committee is to discuss and review policies with respect to risk assessment and risk management, including guidelines and policies governing our risk assessment and risk management processes. The Audit Committee is also charged with overseeing certain areas of material risks to the Company, including cybersecurity and safety risks (discussed further below). Compensation-Related Risks In 2024, as part of our risk management process and after conducting such a review and evaluation in 2023, we conducted a comprehensive review and evaluation of our compensation programs and policies. The assessment covered each material component of executive and non-executivecompensation. In evaluating our compensation components, we identified risk-limiting characteristics including the following:

| • |     | We conduct an annual comprehensive analysis of peer group compensation and refer to broader market-based benchmarking studies to evaluate how our compensation program compares. This year, in response to feedback from Frederic W. Cook & Company, Inc. (“FW Cook”), an independent management compensation consulting firm engaged by the Compensation Committee in fiscal 2024 to assist with executive compensation matters, on the makeup of the peer group, we removed two companies (Beazer Homes USA and M.D.C. Holdings) from our peer group. Beazer Homes USA, Inc. was removed as it was the smallest peer across all key financial metrics, and M.D.C. Holdings, Inc. was removed as it was acquired in April 2024 and is no longer publicly traded. Relative to our peers, we continue to require above-median performance targets to earn target payouts. This mitigates the risk of excessive compensation relative to our peers and strengthens thePay-for-Performancelink between executive compensation and Company performance. |

| • |     | A high percentage of our overall pay mix to senior management and key associates is equity-based, and such equity-based awards are more heavily weighted toward performance share awards vesting over three years versus time-based shares. Our cash bonuses are capped at a certain dollar amount for Messrs. Miller and Jaffe. This mitigates the risk of excessive focus on short-term returns and encourages long-term value creation. |

| • |     | The Compensation Committee may use negative discretion to adjust annual incentive compensation