Business
7:36 am
Mon June 24, 2013

Executive Pay: How South Florida CEOs Measure Up

Stuart Miller is the CEO of Lennar Corporation based in Miami. Miller reportedly makes about $4,000 an hour.
Listen to Miami Herald economy writer Doug Hanks explain the relationship between CEO compensation and shareholder return at South Florida companies like Miami-based homebuilder Lennar and Citrix Systems in Fort Lauderdale. Host Karen Burkett reports.

Lennar CEO Stuart Miller earned almost $13 million last year. That’s more than $4,000 per work hour, easily making the 55-year-old the highest-paid chief executive among South Florida’s largest companies.

Was Miller overpaid? His compensation from the national home builder his father co-founded amounted to 265 times what the Bureau of Labor Statistics said is the average annual pay for someone in the construction business. But by one measure of particular interest to shareholders, Miller’s pay may be seen as about right.

While the chief of the nation’s largest homebuilder earned a higher salary than any of the other CEOs of the region’s largest companies, Lennar managed to reward its shareholders in an out-sized way, too.

The Miami-based company saw returns double last year, with stock price surging from around $18 to $38 a share amid a broader rebound in the building industry.

“As his company has done better, it has been fairly reflected in the CEO’s pay,” Luis Navas, a consultant with Global Governance Advisors, said of Lennar. “They have almost perfect pay-for-performance alignment.”

For this year’s review of CEO compensation, Business Monday is examining not only a CEO’s salary, but also how that compares to how each company rewarded shareholders during the same year. It’s a key metric, according to GGA, a compensation advisory firm with headquarters in Toronto and Miami. GGA partnered with the Herald for this story. The firm analyzed the compensation filings for the 25 largest firms in South Florida, as measured by the value of their publicly traded stock.

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