Lennar's Co-CEOs: A $7M Gap in Pay
1min read In a surprising turn of events, the co-CEOs of a $31 billion homebuilder have found themselves in a unique situation where one of them is making millions more than the other. This revelation has sparked curiosity and raised questions about the dynamics of their leadership and the company's compensation structure.
The homebuilder in question is lennar corporation, a leading home construction company in the United States. The company has been co-led by Stuart Miller and Rick Beckwitt since 2011, when Miller stepped down as CEO and Beckwitt took over the position. However, Miller retained the title of executive chairman, which has raised eyebrows about the disparity in their compensation.
According to regulatory filings, Miller's total compensation in 2020 was $21.5 million, while Beckwitt's was $14.5 million. This $7 million difference has led to speculation about the reasons behind the discrepancy. Some industry experts suggest that Miller's higher compensation may be due to his role as executive chairman, which involves overseeing the company's strategic direction and providing guidance to the CEO.
However, others argue that the compensation difference may be a result of Miller's longer tenure with the company. Miller joined lennar in 1993 and served as CEO from 2006 to 2011, while Beckwitt joined the company in 2000 and became CEO in 2011. This experience gap could potentially explain the compensation disparity.
Regardless of the reasons behind the compensation difference, the situation has raised questions about the fairness and transparency of Lennar's compensation structure. Some shareholders have expressed concern about the potential for conflicts of interest, as Miller, as executive chairman, has a say in determining his own compensation.
In response to these concerns, Lennar has stated that its compensation structure is designed to align the interests of its executives with those of its shareholders. The company has also noted that its compensation practices are subject to review and approval by its compensation committee, which is composed of independent directors.
As the situation continues to unfold, it remains to be seen how Lennar will address the compensation disparity between its co-CEOs. The company may choose to adjust its compensation structure to better align with industry standards or to address shareholder concerns. In the meantime, the situation serves as a reminder of the complex dynamics of leadership and compensation in the 