A pending reorganization of the corporate structure at Reston-based homebuilder NVR Inc. means founder Dwight C. Schar will give up some of his responsibilities, relinquishing his position as chief executive while remaining chairman of the board.
But Schar will not give up any of his recently increased annual salary, which was boosted to $2 million at the beginning of this year, according to a company filing with the Securities and Exchange Commission made public yesterday.
While serving double duty as NVR's chairman and chief executive last year, Schar received $1.7 million in salary and a bonus of $1.7 million.
Schar's salary as chief executive and chairman increased at the beginning of this year to $2 million with the potential for a $2 million bonus, according to a March filing with the SEC.
NVR spokesman Dan Malzahn said the company had no comment on Schar's compensation package and its relation to his new role at the company.
"Separating the roles of the Chairman of the Board and the Chief Executive Officer now aligns NVR's management structure with what is considered an essential corporate governance best practice," Schar said in a written statement released last week.
Schar has been chairman and chief executive of NVR since 1987, when his NVHomes acquired Ryan Homes, creating the new company. NVR sells about 12,750 homes a year and reported revenue of $4.25 billion in 2004.
Incoming chief executive Paul C. Saville, who now is chief financial officer, will receive a higher salary for his bump up the corporate ladder. According to the filing, Saville will earn $650,000 and be eligible for a bonus up to 100 percent of his salary. Saville received $470,000 in salary in 2004, which increased to $550,000 at the beginning of 2005.
NVR Controller Dennis M. Seremet will step into Saville's shoes, receiving a $400,000 salary. He will be eligible for an annual bonus of up to $400,000.