CALIFORNIA’S HIGHEST-PAID EXECUTIVES : Recession and Gulf Crisis Take Their Toll on Executive Paychecks Too : Compensation: Some corporate officials took $1-million pay cuts. But a handful of companies handed out fat raises.

Last year was a tough one for retailers and builders.

When the economy slowed and the Persian Gulf crisis erupted, the housing market collapsed and retail sales slowed. Thousands of workers were laid off, and numerous companies failed.

The carnage ripped through executive suites as well. Although there were not a lot of chief executives who lost their jobs, their pay often was pared substantially.

The top two executives at L.A. Gear, for example, took home more than $5 million less in 1990 than they earned in 1989.

Executive Vice President Sandy Saemann suffered the biggest pay cut, going to an annual salary of $2,541,408 from $5,288,212--a $2,746,804 decline. The company’s chief executive, Robert Y. Greenberg, shaved $1,955,757 from his pay. However, he still earned $3,467,014 in 1990.

The cuts were in response to declining profits at the once-hot athletic shoe company. L.A. Gear has lost money during the past two quarters. Greenberg says he’s going to work for free until the company returns to profitability.

Several local home builders also saw substantial salary cuts last year because of the overall market slowdown.

For example, Bruce Karatz, chief executive of Kaufman & Broad, took home nearly $1.18 million less in 1990 than in 1989. That’s because net profit at the West Los Angeles-based home building company he heads was cut in half, company spokeswoman Eileen Rose said.

“A significant portion of our senior manager’s pay is tied to performance,” Rose said. “1990 was a difficult year in home building, and that is reflected in Mr. Karatz’s compensation.”

“This is what should happen,” said Michael McCullough, principal at William M. Mercer Inc., compensation consulting firm in Los Angeles. “We are seeing people putting their money where their strategies are. That’s admirable.”

The same holds true at Standard Pacific Corp., a Costa Mesa-based home builder, which pared the salaries of its top executives. Ronald Foell, the company’s president, saw his pay drop to $1.19 million from $2.36 million a year ago. And Chief Executive Arthur E. Svendsen took an $848,514 pay cut.

Foell and Svendsen earn the bulk of their pay from incentive bonuses that are tied to the performance of the divisions they run. Since the company was less profitable in 1990 than it was in 1989, their bonuses were cut by more than half, a company spokeswoman noted.

Although executives in other industries also took big pay cuts, some of their misfortunes are explained by unusual events. A few executives passed day-to-day management of their companies to younger officers, for example.

And at Fluor Corp., the Irvine-based engineering and construction giant, Leslie McCraw’s base salary actually increased, as did his company’s profits. However, in 1989, he received an extraordinary bonus based on the appreciation of the company’s stock over the previous three years.

Clearly, these executives still earned ample salaries. But, compensation experts maintain, the cuts are significant both in a real and symbolic sense.

Moreover, such cuts are painful for top executives for emotional reasons, said Gary C. Hourihan, president of Strategic Compensation Associates.

“Compensation becomes an issue of pride,” Hourihan noted. “There is some pain, even though you are starting at $3 million and going to a million and a half.”

The flip side of the coin: A handful of very profitable companies rewarded their executives handsomely.

Walt Disney Co., which saw its profits rise by $120 million to $824 million in 1990, gave Chief Executive Michael D. Eisner a $1.6-million raise, bringing his salary and bonus to a stunning $11.2 million. Company President Frank G. Wells got an $821,935 boost. His total pay: $5.6 million.

And Mattel Inc., which has seen profits soar in the past three years, more than doubled its chief executive’s salary. John W. Amerman earned $2.56 million in 1990, compared to less than $1.2 million in 1989. Lindsey F. Williams, president of Mattel International, earned $1.5 million in 1990, up $994,644 from 1989. And Jill Barad, president of Mattel USA, got an $833,037 pay hike, bringing her net salary and bonus to $1.35 million.

BIGGEST LOSERS

1990 NAME COMPANY Comp. 1 Sandy Saemann L.A. Gear 2,541,408 2 Robert Greenberg L.A. Gear 3,467,014 3 Bruce Karatz Kaufman & Broad Home 1,825,646 4 Ronald R. Foell Standard Pacific L.P. 1,190,662 5 Christopher C. Gibbs J.M. Peters Co. 1,794,575 6 A. W. Clausen BankAmerica Corp. 712,500 7 Leslie G. McCraw Fluor 898,906 8 Arthur E. Svendsen Standard Pacific L.P. 1,003,071 9 Aaron Spelling Spelling Entertainment 979,503 10 E. Duke Vincent Spelling Entertainment 627,981

1989 NAME COMPANY Comp. Change 1 Sandy Saemann L.A. Gear 5,288,212 -2,746,804 2 Robert Greenberg L.A. Gear 5,422,771 -1,955,757 3 Bruce Karatz Kaufman & Broad Home 3,002,012 -1,176,366 4 Ronald R. Foell Standard Pacific L.P. 2,358,355 -1,167,693 5 Christopher C. Gibbs J.M. Peters Co. 2,923,685 -1,129,110 6 A. W. Clausen BankAmerica Corp. 1,737,500 -1,025,000 7 Leslie G. McCraw Fluor 1,783,192 -884,286 8 Arthur E. Svendsen Standard Pacific L.P. 1,851,585 -848,514 9 Aaron Spelling Spelling Entertainment 1,765,769 -786,266 10 E. Duke Vincent Spelling Entertainment 1,380,000 -752,019

BIGGEST WINNERS

1990 NAME COMPANY Comp. 1 Michael D. Eisner Walt Disney Co. 11,233,229 2 Bram Goldsmith City National 2,531,860 3 John W. Amerman Mattel 2,560,221 4 Jules Haimovitz Spelling Entertainment 1,850,113 5 Lindsey F. Williams Mattel 1,506,237 6 James M. Peters J.M. Peters Co. 1,403,240 7 Mark Hughes Herbalife International 2,013,821 8 Sam Ginn Pacific Telesis Group 1,875,740 9 Jill E. Barad Mattel 1,353,747 10 Martin M. Koffel Urs 989,584

1989 NAME COMPANY Comp. Change 1 Michael D. Eisner Walt Disney Co. 9,589,360 +1,643,869 2 Bram Goldsmith City National 941,452 +1,590,408 3 John W. Amerman Mattel 1,178,560 +1,381,661 4 Jules Haimovitz Spelling Entertainment 658,292 +1,191,821 5 Lindsey F. Williams Mattel 511,593 +994,644 6 James M. Peters J.M. Peters Co. 416,500 +986,740 7 Mark Hughes Herbalife International 1,062,176 +951,645 8 Sam Ginn Pacific Telesis Group 1,007,046 +868,694 9 Jill E. Barad Mattel 520,710 +833,037 10 Martin M. Koffel Urs 163,774 +825,810