NVR Chairman Will Forgo Salary For Third Year
Add Dwight C. Schar, the executive chairman of Reston-based homebuilder NVR, to the list of local executives who are announcing pay cuts due to the rough economy.
Schar will forego his $1.5 million salary and take no bonus in 2009 as his company weathers the worst housing downturn in decades, NVR said in a filing on Monday. Schar, perhaps a bit ahead of the curve, did not take any salary or bonus this year or in 2007.
The announcement by NVR on Monday comes after Craig A. Dubow, chairman and chief executive of the media giant Gannett, said last week he was taking a 17 percent salary cut. Student lender Sallie Mae of Reston also said last week its chairman, Anthony P. Terracciano, would take a yearly pay cut and delay some of his stock awards.
As a homebuilder, NVR is at the forefront of the decline. Even so, the company has steered clear of some of the major losses seen by its homebuilding peers because of its fairly conservative land acquisition strategy, where it takes options to buy rather than outright purchasing acres.
Still, things have not been easy going. In the third quarter, NVR reported that its profit fell 60 percent with new home orders declining and fewer mortgage loans being made.
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