Meritage Homes : Investor Outreach Presentation – December 2022
November 21, 2022 at 12:10 pm EST
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MERITAGE INVESTOR OUTREACH PRESENTATION
DECEMBER 2022
MERITAGE'S COMPENSATION GOVERNANCE STRATEGY
Our NEO compensation program is designed to drive and reward superior corporate performance both annually and over the long-term while simultaneously striving to be externally competitive amongst our peer group
Our compensation program addresses:
Alignment of NEO pay with performance
Succession planning of our NEOs
for retention planning
Long track record of fair executive compensation
Our compensation policies and programs have historically received strong support from our shareholders, ISS, Glass Lewis and MSCI
Our Board of Directors has had a robust succession strategy in place for all NEOs
Evidenced by the evolution over the last 7+ years
Based on identifying key skills and competencies needed for today and in the future
Latest NEO hiring of Malissia Clinton as General Counsel improved the capabilities and diversity of our management team
We utilize an established third party compensation consultant to conduct annual compensation reviews and benchmark studies to assist us in remaining aligned with general corporate best practices and competitive with industry compensation programs
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OVERVIEW OF MERITAGE'S ESG STRATEGY
ENVIRONMENTAL
SOCIAL
GOVERNANCE
Sustainability & resource efficiency
Relationship management with employees,
Accountable governance & transparent
customers, vendors & the community
operations
Topics
•
HERS rating
•
DEI
• Ethics & compliance, risk management
•
Climate reporting
•
Recruitment & retention, company
• ESG data accuracy & controls
•
Public policy
culture, voice of the employee
• ESG advisory council guidance
Materiality
•
Customer satisfaction
•
Industry ESG data standardization
•
Health & safety
•
UN SDGs alignment
•
Supply chain sustainability
• Support for local communities
Goals
Baseline measurements and GHG
Increase engagement and DEI initiatives
Documentation of existing practices
reductions
Plan
•
Reduce HERS through better inputs
• Increase diversity with employees
• Ethics and human rights policies
and building science
• Increase diversity with trades
• Annual refresh of all guidance
Action
GHG output (our Scope 3)
documents
•
Work with vendors to improve their
• Philanthropic efforts
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HIGHLIGHTS OF MERITAGE'S ESG INITIATIVES
ENVIRONMENTAL
SOCIAL
GOVERNANCE
Achieved annual avg. HERS rating of 53
One of top 3 HERS ratings in our peer group
First in our peer group to issue TCFD reporting and become an official TCFD supporter
Datapoints relate to 2021.
Peer group refers to U.S. public production builders.
4.5 Glassdoor ratings compared to 3.9 peer group avg.
0.7 TRIR safety rating
92.1% customer satisfaction AVID ratings in
2021
Signed CEO Action for Diversity & Inclusion pledge
$1M+ in philanthropy to social equity & environmental sustainability efforts
27% board diversity (3 of 11)
Directors are members of the National Association of Corporate Directors
Board & mgmt. expertise in ESG
Board & mgmt. oversight of strategy & risk spanning financial, cybersecurity and ESG
Only builder in peer group to have standalone Environmental, Social & Sustainability Board Committee to provide oversight to environmental & social risks
Annual ESG reporting & TCFD reporting
Disclosed EEO-1 data
TCFD refers to Task Force on Climate-Related Financial Disclosures. TRIR refers to Total Recordable Incident Rate.
Link for ESG report and TCFD report found here.
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Disclaimer
Meritage Homes Corporation published this content on 21 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2022 17:09:08 UTC.
Meritage Homes Corporation is a designer and builder of single-family attached and detached homes. Its segments include Homebuilding and Financial Services. The Homebuilding segment is engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. The Financial Services segment offer title and escrow, mortgage, and insurance services. It has operations in three regions: West, Central and East, which are comprised of 10 states: Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee. These three regions are its principal homebuilding reporting segments. Its homebuilding activities are conducted under the name of Meritage Homes in each of its homebuilding markets. It also operates Carefree Title Agency, Inc., its wholly owned title company, which provides title insurance and closing/settlement services to its homebuyers in certain states.