Company: LEN
Filing Date: 2025-02-28
Form Type: DEF 14A
Source: 0001193125-25-040938
Chunk: 43

Company: LENNAR CORP /NEW/
Filing Date: 2025-02-28
Form: DEF 14A
Chunk 43
---
 salary, annual cash incentive awards, and equity awards) for fiscal 2024 was either awarded based on Lennar’s financial performance or was awarded in the form of equity. In order to incentivize the creation of long-term value for our stockholders directly in response to articulated stockholder concerns, we maintain a long-term incentive program pursuant to which equity awards to executives are more heavily weighted towards performance-based equity awards versus time-based equity awards. This provides greater alignment between executive compensation and the Company’s performance outcomes. Additionally, the performance-based equity awards will only be earned if Lennar achieves predetermined financial and operational goals over a three-year period, which take into account the Company’s performance relative to its peer group (and as of fiscal year 2023, we require greater outperformance relative to the Company’s peer group to earn target payouts). See “Proxy Summary—Compensation Highlights” in this proxy statement for further information. These practices highlight the Company’s compensation philosophy of aligning executive compensation and Company performance and continually innovating our compensation program to strengthen this alignment in response to stockholder concerns. Annual cash incentive awards for these executives are also tied to performance. The annual cash incentive awards for our Co-CEOswere calculated based on Pretax Income (as defined in “Compensation Discussion and Analysis—2024 Compensation Decisions—Annual Cash Incentive Compensation” of this proxy statement) after a capital charge—the metric we believe most directly translates into stockholder value. During fiscal year 2023, the Pretax Income payout percentage was reduced, which decreased the total short-term incentive bonus payable to executives while also strengthening the link between short-term incentive payouts and the Company’s performance. This reduced Pretax Income payout percentage has been maintained for fiscal 2024. Further discussion of the annual cash incentive awards is in “Compensation Discussion and Analysis—2024 Compensation Decisions—Annual Cash Incentive Compensation” of this proxy statement. Annual cash incentive awards for our CFO, our GC, our Controller and our Former EVP, are based on Lennar’s performance as well as their operational and strategic performance in their respective areas of responsibility. Since the principal responsibilities for these executives include establishing and maintaining strong corporate controls and regulatory compliance, a smaller portion—approximately 83%—of their total direct compensation for fiscal 2024 was either performance-based or equity-based. Team Compensation Philosophy The compensation of our senior executives reflects our emphasis on and commitment to a carefully coordinated, team-based leadership approach. We believe this culture of collegiality at the