defa14a
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
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Meritage Homes Corporation
 
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     The following information amends the definitive proxy statement of Meritage Homes Corporation for the 2010 Annual Meeting of Stockholders (the “2010 Proxy Statement”), which was filed with the Securities and Exchange Commission on March 31, 2010 and is first being sent to stockholders on or about April 9, 2010. Capitalized terms used herein shall have the meanings given to such terms in the definitive proxy statement.
     In the Summary Compensation Table in the 2010 Proxy Statement, the 2007 stock awards compensation for Steven J. Hilton and Larry W. Seay was incorrectly reported. For Mr. Hilton, the stock awards compensation expense was originally reported as $262,260. The correct amount is $770,760. For Mr. Seay, the stock awards compensation expense was originally reported as $106,842 and the correct amount is $313,999. In addition, the 2007 amounts reported as stock awards compensation and options awards compensation for C. Timothy White were inadvertently transposed.
     No compensation information in the Summary Compensation Table relating to fiscal 2009 or 2008 is affected.
     A revised Summary Compensation Table reflecting these corrections is set forth below.
Summary Compensation Table
                                                                         
                                                    Changes in              
                                                    Pension              
                                            Non-Equity     Value and              
                                            Incentive     Nonqualified     All        
                            Stock     Option     Plan     Deferred     Other        
Name and Principal           Salary     Bonus     Awards     Awards     Compensation     Compensation     Compensation        
Position   Year     ($)     ($)(2)     ($)(3)     $ (4)     ($)     Earnings($)     ($)(6)     Total($)  
Steven J Hilton,
     2009       800,000       —       1,605,375       —       —       —       54,044       2,459,419  
Chairman and CEO(1)
     2008       1,017,500       —       —       2,029,294       —       —       48,382       3,095,176  
 
     2007       1,017,500       —       770,760       1,468,777       —       —       206,116       3,463,153  
 
                                                                        
Larry W. Seay,
     2009       450,000       250,000       1,070,250       —       —       —       48,934       1,819,184  
EVP and CFO
     2008       450,000       —       —       239,010       —       —       40,701       729,711  
 
     2007       450,000       —       313,999       1,128,975       —       2,210 (5)     110,935       2,006,119  
 
                                                                        
C. Timothy White,
     2009       525,000       250,000       1,070,250       —       —       —       45,689       1,890,939  
EVP, General Counsel
     2008       525,000       —       —       —       —       —       52,052       577,052  
and Secretary
     2007       525,000       450,000       321,150       675,140       —       —       92,420       2,063,710  
 
                                                                        
Steven M. Davis,
     2009       400,000       375,000       1,070,250       —       —       —       32,174       1,877,424  
EVP and COO
     2008       400,000       —       —       —       —       —       28,713       428,713  
 
     2007       400,000       250,000       —       598,738       —       —       218,985       1,467,723  
 
(1)   All compensation is for Mr. Hilton’s services in his capacity as the Chairman and Chief Executive Officer of the Company. Mr. Hilton did not receive any separate compensation for his services as a director.
 
(2)   Amounts represent discretionary bonuses approved by the Compensation Committee. The amounts awarded in 2009 are discussed above in the discussion about the compensation awarded to each of our NEOs in 2009.
 
(3)   The non-vested shares (restricted stock) grants have a fair value equal to the closing price of our stock on the date of the grant, in accordance with the requirements of Accounting Standards Codification Subtopic (“ASC”) 718. Balance includes all restricted stock awards granted in the year to our NEO’s and not just the prorated share of all unvested grants that vested in the current year. See additional detail “Grant of Plan-Based Awards” table.
 
(4)   See Note 10 “Incentive Awards and Retirement Plan” of our consolidated financial statements included in our 2009 Annual Report on Form 10-K for a discussion of the Black-Scholes assumptions used for computing the fair value of options granted. As required, the options award calculation is equal to the Black-Scholes value of the option in any year multiplied by the total number of all options granted in the year, not just the proportionate share of all unvested grants that vested in the current year.
 
(5)   Amount represents above-market earnings on deferred compensation that is not tax-qualified. See Nonqualified Deferred Compensation table below for more detail on Mr. Seay’s deferred compensation earnings.
 
(6)   See following table for more detail:

 

 

All Other Compensation Table
Year Ended December 31, 2009
                                                         
            Health and                                    
            Insurance             Car     Plane             Total All Other  
            Premiums     401(k)     Allowance     Travel     Other     Compensation  
Name and Principal Position           ($)(1)     Match ($)     ($)     ($)(2)     ($)(3)(4)(5)     ($)  
Steven J Hilton,
     2009       31,921       5,880       —       —       16,243       54,044  
Chairman and CEO
     2008       33,230       5,520       —       —       9,632       48,382  
 
     2007       29,557       5,400       —       3,855       167,304       206,116  
 
                                                        
Larry W. Seay,
     2009       23,578       5,880       14,400       —       5,076       48,934  
EVP and CFO
     2008       17,452       5,520       14,400       —       3,329       40,701  
 
     2007       16,840       5,400       14,400       —       74,295       110,935  
 
                                                        
C. Timothy White,
     2009       26,667       —       14,400       —       4,622       45,689  
EVP, General Counsel
     2008       31,267       —       14,400       —       6,385       52,052  
and Secretary
     2007       21,338       —       14,400       —       56,682       92,420  
 
                                                        
Steven M. Davis,
     2009       17,174       —       15,000       —       —       32,174  
EVP and COO
     2008       13,713       —       15,000       —       —       28,713  
 
     2007       13,408       —       15,000       —       190,577       218,985  
 
(1)   Includes: (i) employer portion of benefits provided to all employees and (ii) life and disability insurance premiums and healthcare check-up as contemplated in each NEO’s employment agreement if such elections were made.
 
(2)   In accordance with Mr. Hilton’s employment agreement in effect during 2006, he was granted the right to personal use of a chartered aircraft for a pre-determined number of annual flight hours. The amounts in the table above reflect these travel benefits, which were computed as out-of-pocket costs paid to the respective aircraft charter companies for these personal-use flights. The balance also reflects any tax gross-up paid to Mr. Hilton in connection with the taxable income associated with these flights until the adoption of his then new employment agreement in mid-January 2007.
 
(3)   Other includes the following for 2009: income gross-up to reflect tax consequences, as applicable, of $16,243; $5,076 and $4,622 for Messrs. Hilton, Seay and White, respectively.
 
(4)   Other includes the following for 2008: income gross-up to reflect tax consequences, as applicable, of $9,632, $3,329 and $6,385 for Messrs. Hilton, Seay and White, respectively.
 
(5)   Other includes the following for 2007: (i) spousal travel of $6,217, $1,182, $1,182 and $1,182 for Messrs. Hilton, Seay, White and Davis, respectively; (ii) relocation costs of $119,012 for Mr. Davis; (iii) stock option tender offer payment of $1.50 per option totaling $150,000, $60,000, $52,500 and $22,500 for Messrs. Hilton, Seay, White and Davis, respectively; and (iv) income gross-up to reflect tax consequences, as applicable, of $11,087, $13,113, $3,000 and $47,883 for Messrs. Hilton, Seay, White and Davis, respectively. Spousal travel is determined as either the actual ticket price for commercial airline travel or the equivalent of a first-class comparable ticket on a major air travel carrier for private plane travel.