Citing their repeated failure to link pay and performance when designing executive compensation packages, today CtW sent a letter to shareholders of The Ryland Group urging them to withhold votes from Compensation Committee members William Jews, Norman Metcalfe and Charlotte St. Martin at the company’s annual meeting on April 23, 2008.

“Even in an industry known for disproportionate compensation, Ryland’s practices have long stood out,” said CtW Investment Group Executive Director William Patterson. “Investors are disappointed that despite facing a substantial vote of no confidence last year, Directors Jews, Metcalfe and St. Martin continue to misalign executive and shareholder interests. At the upcoming annual meeting, shareholders can send a message that Ryland needs Directors who will restore the link between pay and performance.”

The letter raises concerns about the magnitude of CEO R. Chad Dreir’s annual bonus, long benchmarked at two percent of pre-tax income. It also highlights his excessive supplemental pension benefits, the Company’s provision of tax “gross ups;” and his rich single-trigger severance agreement.

Posted by Anna Mumford on April 10, 2008 1:37 PM