Two Top Capital Pacific Execs’ Bonuses Hiked

Capital Pacific Holdings Inc. raised the bonuses awarded to two senior executives by at least 92% for the luxury home builder’s last fiscal year, according to a document the company filed Wednesday with the Securities and Exchange Commission.

Chief Executive Hadi Makarechian received a bonus of $598,000 for the year ended Feb. 29, a 92% increase above the $312,560 he got the previous year. The bonus for Chief Financial Officer Steven O. Spelman Jr. more than doubled to to $115,000 from $57,500 the previous year.

The Newport Beach company said its board determined that the current executive bonus program wouldn’t allow it to provide compensation comparable to the chief executive’s responsibilities.

The board based its decision on the company’s “increased performance,” Makarechian’s additional duties as chief operating officer’s duties and the fact that he didn’t receive any noncash compensation.

Capital Pacific reported net income of $6.2 million, or 44 cents a share, for its last fiscal year, compared with $3.3 million, or 23 cents a share, the previous year.