Company: LEN
Filing Date: 2025-02-28
Form Type: DEF 14A
Source: 0001193125-25-040938
Chunk: 48

Company: LENNAR CORP /NEW/
Filing Date: 2025-02-28
Form: DEF 14A
Chunk 48
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 annual cash bonus to Pretax Income achieves this goal. For example, there have been years, such as fiscal 2008 and 2009 during the economic downturn, when these executives did not receive cash bonuses, and other years, such as more recent years, when Lennar has been profitable and the executives have received significant cash bonuses.

In January and April 2024, informed by feedback received during extensive outreach to stockholders, the results of the Company’s 2024 advisory vote on executive compensation, and consultations with its independent compensation advisor, the Compensation Committee determined that the cash bonus plans of Messrs. Miller and Jaffe should continue to provide for a cash bonus cap (originally introduced in November 2022) of $7.0 million and $6.0 million, respectively.

In addition, at that time, our Compensation Committee reviewed an analysis of the compensation Lennar paid to its senior executives compared with that paid by our Peer Group. This included an analysis of the fiscal 2023 compensation paid to Messrs. Miller and Jaffe as compared with the compensation paid in fiscal 2022 and 2023 to the individuals in comparable positions at companies in our Peer Group, in the Fortune 500, and in the Executive Compensation Survey conducted by FW Cook. Based on its review of the analysis, the results Lennar achieved during fiscal 2023, and the results Lennar was expected to achieve during fiscal 2024, the Compensation Committee decided to continue applying a formula for Messrs. Miller and Jaffe that included cash incentive bonuses equal to 0.20% and 0.15%, respectively, of Lennar’s fiscal 2024 Pretax Income, after a capital charge equal to 7.3% of tangible capital.

Using such formula, based on our fiscal 2024 Pretax Income of $5.3 billion, and after taking into account the $1.9 billion capital charge, Mr. Miller would have been entitled to a cash bonus payment of $6,828,309 and Mr. Jaffe would have been entitled to a cash bonus payment of $5,121,231. However, after careful review and discussion of the Company’s fiscal 2024 performance with management, the Compensation Committee exercised its negative discretion to reduce the cash bonus for each of Messrs. Miller and Jaffe. The amount of reduction was calculated for each of Mr. Miller and Mr. Jaffe by deducting from the Pre-Reduction Bonus, the product of (a