Pay vs Performance Disclosure, Table

Pay Versus Performance

Disclosure

This disclosure has been prepared in accordance with the SEC’s pay versus performance rules in Item 402(v) of Regulation S-K under the 1934 Act (“Item 402(v)”) and does not necessarily reflect value actually realized by the named executive officers or how the Compensation Committee evaluates compensation decisions in light of Company or individual performance. For discussion of how the Compensation Committee seeks to align pay with performance when making compensation decisions, please review the Compensation Discussion and Analysis beginning on page 28.

The following tables and related disclosures provide information about (i) the total compensation (“SCT Total”) of our principal executive officer (“PEO”) and our non-PEO named executive officers (collectively, the “Non-PEO NEOs”) as presented in the Summary Compensation Table on page 49, (ii) the “compensation actually paid” (“CAP”) to our PEO and our Non-PEO NEOs, as calculated pursuant to Item 402(v), (iii) certain financial performance measures, and (iv) the relationship of the CAP to those financial performance measures.


Year (a)	Summary Compensation Table Total for PEO ($) (b)	Compensation Actually Paid to PEO ($) (c)	Average Summary Compensation Table Total for Non-PEO NEOs ($) (d)	Average Compensation Actually Paid to Non-PEO NEOs ($) (e)	Value of Initial Fixed $100 Investment on Dec. 31, 2020 Based On:		Net Income ($) (thousands) (h)	EBT (Millions) (i)
Year (a)	Summary Compensation Table Total for PEO ($) (b)	Compensation Actually Paid to PEO ($) (c)		Average Compensation Actually Paid to Non-PEO NEOs ($) (e)	Total Shareholder Return (f)	S&P Homebuilder Index Total Shareholder Return (g)	Net Income ($) (thousands) (h)	EBT (Millions) (i)
2025	$10,075,397	$13,287,037	$2,051,407	$2,432,042	$230	$179	$782,500	$1,042.0
2024	15,415,093	23,902,046	4,151,517	5,253,279	239	181	883,309	1,156.1
2023	14,351,112	25,040,704	3,828,426	5,415,176	208	166	768,929	1,017.8
2022	8,795,572	6,860,620	2,340,574	1,922,659	118	105	1,052,800	1,392.7
2021	12,063,477	17,731,294	3,826,353	4,513,478	136	149	663,026	863.1

Names of PEO and Non-PEO NEOs (Column (b); Column (c); Column (d); Column (e))

2025: PEO: Sheryl D. Palmer; Non-PEO NEOs: Curt VanHyfte, Todd Merrill and Darrell Sherman

2024: PEO: Sheryl D. Palmer; Non-PEO NEOs: Curt VanHyfte, Darrell Sherman

2023: PEO: Sheryl D. Palmer; Non-PEO NEOs: Curt VanHyfte, Darrell Sherman and Lou Steffens

2022: PEO: Sheryl D. Palmer; Non-PEO NEOs: Lou Steffens, Darrell Sherman

2021: PEO: Sheryl D. Palmer; Non-PEO NEOs: David Cone, Darrell Sherman

Adjustments to Calculate Compensation Actually Paid to PEO and Average Compensation Actually Paid to Non-PEO NEOs

The table below describes the adjustments, each of which is required by SEC rules, to calculate the fiscal 2025 CAP Amounts from the SCT Total of our PEO (Column (b)) and our Non-PEO NEOs (Column (d)). The SCT Total and CAP Amounts do not reflect the actual amount of compensation earned by or paid to our executives during the applicable years, but rather are amounts determined in accordance with Item 402(v).


	2025
Adjustments	PEO	Non-PEO NEOs*
SCT Total	10,075,397	2,051,407
Adjustments for defined benefit pension plans
(Deduct): Aggregate change in actuarial present value included in SCT Total for the covered fiscal year	(7,305)	(2,171)
Add: Service cost for the covered fiscal year	0	0
Add: Prior service cost for the covered fiscal year	0	0
Adjustments for stock awards and option awards**
(Deduct): Aggregate value for stock awards and option awards included in SCT Total for the covered fiscal year	(6,999,944)	(991,744)
Add: Fair value at year end of awards granted during the covered fiscal year that were outstanding and unvested at the covered fiscal year end	7,359,839	791,378
Add (Deduct): Year-over-year change in fair value at covered fiscal year end of awards granted in any prior fiscal year that were outstanding and unvested at the covered fiscal year end	1,739,296	515,131
Add: Vesting date fair value of awards granted and vested during the covered fiscal year	0	0
Add (Deduct): Change as of the vesting date (from the end of the prior fiscal year) in fair value of awards granted in any prior fiscal year for which vesting conditions were satisfied during the covered fiscal year	1,119,754	68,041
(Deduct): Fair value at end of prior fiscal year of awards granted in any prior fiscal year that failed to meet the applicable vesting conditions during the covered fiscal year	0	0
Add: Dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the SCT Total for the covered fiscal year	0	0
CAP Amounts (as calculated)	13,287,037	2,432,042

*	Amounts presented are averages for the entire group of Non-PEO NEOs in 2025.

**	To determine the value of Market-Based Awards included in CAP, the Monte-Carlo valuation model valuation model was used.

Total Shareholder Return (Column (f); Column (g))

Total shareholder return, displayed as the change in value of an initial $100 investment over the years covered by the table.

Peer Group Total Shareholder Return (Column (g))

The peer group used in this disclosure is the S&P Homebuilding Index, which is the same peer group used in our Form 10-K.

Net Income (Column (h))

Net Income as reported in the Company’s Consolidated Statements of Income included in our Form 10-K.

Earnings Before Taxes (EBT) (Column (i))

Earnings Before Taxes is referred to as “EBT” in our named executive officers’ incentive programs.

EBT was determined to be the most important financial performance measure linking CAP to Company performance for 2025 and therefore was selected as the 2025 “Company-Selected Measure” as defined in Item 402(v).

Company Selected Measure Name

Earnings Before Taxes

Named Executive Officers, Footnote

Names of PEO and Non-PEO NEOs (Column (b); Column (c); Column (d); Column (e))

2025: PEO: Sheryl D. Palmer; Non-PEO NEOs: Curt VanHyfte, Todd Merrill and Darrell Sherman

2024: PEO: Sheryl D. Palmer; Non-PEO NEOs: Curt VanHyfte, Darrell Sherman

2023: PEO: Sheryl D. Palmer; Non-PEO NEOs: Curt VanHyfte, Darrell Sherman and Lou Steffens

2022: PEO: Sheryl D. Palmer; Non-PEO NEOs: Lou Steffens, Darrell Sherman

2021: PEO: Sheryl D. Palmer; Non-PEO NEOs: David Cone, Darrell Sherman

Peer Group Issuers, Footnote

The peer group used in this disclosure is the S&P Homebuilding Index, which is the same peer group used in our Form 10-K.

PEO Total Compensation Amount

$ 10,075,397

$ 15,415,093

$ 14,351,112

$ 8,795,572

$ 12,063,477

PEO Actually Paid Compensation Amount

$ 13,287,037

23,902,046

25,040,704

6,860,620

17,731,294

Adjustment To PEO Compensation, Footnote

Adjustments to Calculate Compensation Actually Paid to PEO and Average Compensation Actually Paid to Non-PEO NEOs


	2025
Adjustments	PEO	Non-PEO NEOs*
SCT Total	10,075,397	2,051,407
Adjustments for defined benefit pension plans
(Deduct): Aggregate change in actuarial present value included in SCT Total for the covered fiscal year	(7,305)	(2,171)
Add: Service cost for the covered fiscal year	0	0
Add: Prior service cost for the covered fiscal year	0	0
Adjustments for stock awards and option awards**
(Deduct): Aggregate value for stock awards and option awards included in SCT Total for the covered fiscal year	(6,999,944)	(991,744)
Add: Fair value at year end of awards granted during the covered fiscal year that were outstanding and unvested at the covered fiscal year end	7,359,839	791,378
Add (Deduct): Year-over-year change in fair value at covered fiscal year end of awards granted in any prior fiscal year that were outstanding and unvested at the covered fiscal year end	1,739,296	515,131
Add: Vesting date fair value of awards granted and vested during the covered fiscal year	0	0
Add (Deduct): Change as of the vesting date (from the end of the prior fiscal year) in fair value of awards granted in any prior fiscal year for which vesting conditions were satisfied during the covered fiscal year	1,119,754	68,041
(Deduct): Fair value at end of prior fiscal year of awards granted in any prior fiscal year that failed to meet the applicable vesting conditions during the covered fiscal year	0	0
Add: Dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the SCT Total for the covered fiscal year	0	0
CAP Amounts (as calculated)	13,287,037	2,432,042

*	Amounts presented are averages for the entire group of Non-PEO NEOs in 2025.

**	To determine the value of Market-Based Awards included in CAP, the Monte-Carlo valuation model valuation model was used.

Non-PEO NEO Average Total Compensation Amount

$ 2,051,407

4,151,517

3,828,426

2,340,574

3,826,353

Non-PEO NEO Average Compensation Actually Paid Amount

$ 2,432,042

5,253,279

5,415,176

1,922,659

4,513,478

Adjustment to Non-PEO NEO Compensation Footnote

Adjustments to Calculate Compensation Actually Paid to PEO and Average Compensation Actually Paid to Non-PEO NEOs


	2025
Adjustments	PEO	Non-PEO NEOs*
SCT Total	10,075,397	2,051,407
Adjustments for defined benefit pension plans
(Deduct): Aggregate change in actuarial present value included in SCT Total for the covered fiscal year	(7,305)	(2,171)
Add: Service cost for the covered fiscal year	0	0
Add: Prior service cost for the covered fiscal year	0	0
Adjustments for stock awards and option awards**
(Deduct): Aggregate value for stock awards and option awards included in SCT Total for the covered fiscal year	(6,999,944)	(991,744)
Add: Fair value at year end of awards granted during the covered fiscal year that were outstanding and unvested at the covered fiscal year end	7,359,839	791,378
Add (Deduct): Year-over-year change in fair value at covered fiscal year end of awards granted in any prior fiscal year that were outstanding and unvested at the covered fiscal year end	1,739,296	515,131
Add: Vesting date fair value of awards granted and vested during the covered fiscal year	0	0
Add (Deduct): Change as of the vesting date (from the end of the prior fiscal year) in fair value of awards granted in any prior fiscal year for which vesting conditions were satisfied during the covered fiscal year	1,119,754	68,041
(Deduct): Fair value at end of prior fiscal year of awards granted in any prior fiscal year that failed to meet the applicable vesting conditions during the covered fiscal year	0	0
Add: Dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the SCT Total for the covered fiscal year	0	0
CAP Amounts (as calculated)	13,287,037	2,432,042

*	Amounts presented are averages for the entire group of Non-PEO NEOs in 2025.

**	To determine the value of Market-Based Awards included in CAP, the Monte-Carlo valuation model valuation model was used.

Compensation Actually Paid vs. Total Shareholder Return

Pay Versus TSR 2021-2025

Compensation Actually Paid vs. Net Income

Pay Versus Net Income 2021-2025

Compensation Actually Paid vs. Company Selected Measure

Pay Versus EBT 2021-2025

Total Shareholder Return Vs Peer Group

Pay Versus TSR 2021-2025

Tabular List, Table

Financial Performance Measures

The following table lists the financial performance measures that, in the Company’s assessment, represent the most important performance measures used to link CAP for our named executive officers to Company performance for 2025.


Tabular List
EBT
Revenue
RONA

Total Shareholder Return Amount

$ 230

239

208

118

136

Peer Group Total Shareholder Return Amount

179

181

166

105

149

Net Income (Loss)

$ 782,500,000

$ 883,309,000

$ 768,929,000

$ 1,052,800,000

$ 663,026,000

Company Selected Measure Amount

1,042,000,000

1,156,100,000

1,017,800,000

1,392,700,000

863,100,000

PEO Name

Sheryl D. Palmer

Measure:: 1

EBT

Measure:: 2

Revenue

Measure:: 3

PEO | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table

RONA

PEO | Pension Adjustments Service Cost

$ (7,305)

PEO | Pension Adjustments Prior Service Cost

PEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table

PEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested

(6,999,944)

PEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested

7,359,839

PEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year

1,739,296

PEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year

PEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year

1,119,754

PEO | Dividends or Other Earnings Paid on Equity Awards not Otherwise Reflected in Total Compensation for Covered Year

Non-PEO NEO | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table

Non-PEO NEO | Pension Adjustments Service Cost

(2,171)

Non-PEO NEO | Pension Adjustments Prior Service Cost

Non-PEO NEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table

Non-PEO NEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested

(991,744)

Non-PEO NEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested

791,378

Non-PEO NEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year

515,131

Non-PEO NEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year

Non-PEO NEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year

68,041

Non-PEO NEO | Dividends or Other Earnings Paid on Equity Awards not Otherwise Reflected in Total Compensation for Covered Year

Award Timing Disclosures [Line Items]

$ 0

Award Timing Disclosure

12 Months Ended

Dec. 31, 2025

Feb. 18, 2025

USD ($)

$ / shares

Award Timing MNPI Disclosure

Long Term Incentive Grant Procedures

The compensation committee generally makes annual awards of equity, including options, during an open trading window after the Company’s February release of year-end earnings. The compensation committee may make limited grants of long term incentives on other dates in connection with a promotion or to compensate newly hired executives for equity or other benefits forfeited upon termination of previous employment or to otherwise induce them to join our Company. Equity awards, including options, are not granted in anticipation of the release of material non-public information, and the release of material non-public information is not timed on the basis of option or other equity grant dates.

During fiscal 2025, the compensation committee granted options to our named executive officers during an open trading window. However, the grant date occurred on February 18, 2025, which was one business day prior to the filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. As required by Item 402(x) of Regulation S-K, we are providing the following information about these option grants.


Name	Grant Date	Number of Securities Underlying the award)	Exercise Price of the Award ($/Sh)	Grant Date Fair Value of the Award	Percentage Change in the Closing Market Price of the Securities Underlying the Award Between the Trading Day Ending Immediately Prior to the Disclosure of Material Nonpublic Information and the Trading Day Beginning Immediately Following the Disclosure of Material Nonpublic Information
Sheryl D. Palmer	2/18/2025	40,392	63.02	$1,399,987	(1.78)%
Curt VanHyfte	2/18/2025	8,656	63.02	$300,017	(1.78)%
Todd Merrill	2/18/2025	1,505	63.02	$52,163	(1.78)%
Darrell C. Sherman	2/18/2025	4,616	63.02	$159,991	(1.78)%

Award Timing Method

Award Timing Predetermined

true

Award Timing MNPI Considered

false

Award Timing, How MNPI Considered

Equity awards, including options, are not granted in anticipation of the release of material non-public information, and the release of material non-public information is not timed on the basis of option or other equity grant dates.

Awards Close in Time to MNPI Disclosures, Table


Name	Grant Date	Number of Securities Underlying the award)	Exercise Price of the Award ($/Sh)	Grant Date Fair Value of the Award	Percentage Change in the Closing Market Price of the Securities Underlying the Award Between the Trading Day Ending Immediately Prior to the Disclosure of Material Nonpublic Information and the Trading Day Beginning Immediately Following the Disclosure of Material Nonpublic Information
Sheryl D. Palmer	2/18/2025	40,392	63.02	$1,399,987	(1.78)%
Curt VanHyfte	2/18/2025	8,656	63.02	$300,017	(1.78)%
Todd Merrill	2/18/2025	1,505	63.02	$52,163	(1.78)%
Darrell C. Sherman	2/18/2025	4,616	63.02	$159,991	(1.78)%

Sheryl D. Palmer [Member]

Sheryl D. Palmer

40,392

$ 63.02

$ 1,399,987

(0.0178)

Curt VanHyfte [Member]

Curt VanHyfte

8,656

$ 63.02

$ 300,017

(0.0178)

Todd Merrill [Member]

Todd Merrill

1,505

$ 63.02

$ 52,163

Darrell C. Sherman [Member]

(0.0178)

Darrell C. Sherman

4,616

$ 63.02

$ 159,991