Peterson
Irvine homebuilder Standard Pacific Corp. said it paid Jeffrey V. Peterson, the company’s outgoing chief executive officer since March, a $3 million bonus plus options on 950,000 company shares.
How’s that for a Christmas bonus?
That breaks down to at least $75,000 a week for the 40 weeks Peterson headed the company, which reported a net loss of $368 million in its most recent quarter ending Sept. 30.
Shares of Standard Pacific closed at $1.42 down 6 cents on Tuesday. The stock peaked this year at $6.85 a share on Sept. 19, up from $4.68 on March 20, when Peterson was appointed.
On the positive side, Peterson was able to boost cash on hand to $721 million while reducing or writing down housing inventory by almost $300 million. Most significantly, he presided when the company received a $580 million infusion from a private equity firm.
“Jeff acted decisively in leading the Company and achieved a significant refinancing of its balance sheet in the midst of one of the most challenging capital markets environments,” said Ronald R. Foell, a co-founder of Standard Pacific who was named non-executive chairman of the board on Dec. 18. “These actions have positioned the Company to weather the current downturn more effectively and to better compete as market conditions improve.”
Peterson replaced Stephen J. Scarborough, who “retired” in March after 24 years with the company, which had been hammered by the collapse of the market for new housing.
On Dec. 18, Standard Pacific named a new CEO, Kenneth L. Campbell III, a partner of private equity firm MatlinPatterson Global Advisors LLC, Standard Pacific’s largest shareholder. Its affiliate, MP CA Homes invested $580 million in Standard Pacific.
To see the Peterson’s contract, CLICK HERE.
Other builder news …
- Investors grab CEO job at O.C. homebuilder
- O.C. builder mothballs 30-plus projects
- Wall St. rout zaps O.C. real estate stocks
- Builders’ discounts average $22,900 in O.C.
See our 2009 outlook interviews …
- Realtor group prez eyes housing’s opportunities
- Pimco’s Simon eyes O.C. home price bottom in late 2009
- Outgoing Realtor prez eyes O.C. rebound by summer
- Tell us what O.C. home prices will do in 2009
Other real estate news …
- Housing in O.C. beach towns slumps, sales off 28%
- O.C.’s newest beachfront listing: $36.9 million
- 1st home ($20 million+) hits O.C. seaside project
- New five-diamond golf resort is ultimate in indulgence
- SoCal rent hikes running at 8-year lows
- Big O.C. landlord offering a month’s free rent
- Inland Empire refugees boosting O.C. rents?
- Late surge puts O.C. property tax payment up $141 million
- Best-read real estate blogging from November
Don’t see why it matters how much a company pays their CEO, unless they’re in trouble and asking for government help, then we’ll have to analyze their business plans and executive compensations before determining whether or not they even deserve a loan or bailout.
Well, let’s see…….
Madonna made $72 Million during 08 to sing and dance.
A-Rod made $28 Million to play some ball.
Manny made $19 Million to watch his homers leave the park.
Simon Cowell makes, what, $40-50 Mil a year to insult contestants and Paula.
Even Elvis made over $30 for performances from 50 years ago.
Some people make a LOT of money……….
I like how ‘retired’ is in quotes.
Off with their heads!
But somehow there is nothing wrong with getting their customers to do the same for a house that does not have an ocean view?
Is he being rewarded for greed and lies, like the typical CEO of today?
Some people make a lot of money for doing something that’s not really all that important. It is amazing.
If the company is doing good, they can pay what ever they want. I have no issues with this guys pay. However if it turns out they cooked the books and it affects shareholders down the road or even takes tax dollars as a bailout. Then hell yes I have a problem and I think he should be held accountable and the money taken back.
** reports a q3 loss of $368 million
** a cup of coffee at starbucks is worth more than a share of their stock right now
** shareholders loosing thousands, millions of dollars over several quarters
** the company probably won’t survive this downturn
and this guy’s gettin a bonus $3.0m??!! unfreakin believable, what a joke
Looks like he spent about two million to get his teeth brightened up……,,,,,,,,,,great smile.
Actually, i think he needs the money for hair products. He’ll just get by.
this company will be bankrupt within a year and if its
not it will only be because the government/ taxpayers
“bailed them out”- and this guy gets a bonus– for what?
voltaires words ring true– behind every great fortune- lies a crime
rants,
You are absolutely correct, this company will be bk by this time next year…….this guy did not leave because the future is so rosy, most likely he was asked to leave when the investors figured out that they would be out of business and needed a scape goat………..three million bucks to leave with no hassle and keep his mouth shut.
I am in the home building industry, a sub-contractor of Standard Pacific. I have noticed that Standard Pacific, Taylor Morrison, and Brandywine are the only homebuilders selling homes in Orange County. Standard Pacific is selling many more homes than any other home builders. I can tell from the amount of new homes they build in every phase. The only residential construction actually happpening is apartments, besides the Single Family Residences mentioned earlier. Granted, I’m not a CPA and even I can tell their books are ugly, however, this is THE best home builder in our region. They will probably do okay by restructuring their debt….we’ll see.
If they can manage their finances as well as they build, Standard Pacific will be okay
Just like any criminal…smile in your face and steal your money. This looks real good when the housing industry is looking for a bailout!! Also, he was a the helm when the company increased their losses, but I’m sure it wasn’t his fault. I’d like to work for that board of directors since they don’t seem to be the sharpest tools in the shed approving that type of bonus.