Subprime Lender’s Top Execs Receive Big Boost in Pay

The top two officers at New Century Financial Corp., an Irvine-based subprime mortgage lender, saw their pay from salary and bonuses surge 48% in 1998 as the company’s profits and stock price rose dramatically.

Chairman and Chief Executive Robert K. Cole and Vice Chairman and President Brad A. Morrice each earned $882,493 in salary and bonuses last year. The figures were disclosed Friday in the company’s annual proxy statement filed with the Securities and Exchange Commission.

Their total compensation for 1998, however, fell 35% because neither received stock last year. In 1997, the two men each received restricted stock valued at $755,789. Their total compensation in 1998 came to $890,933 each, which included car allowances and 401(k) contributions.

The payouts came in a year that saw the company post record profits of $31.1 million, a 75% increase from 1997. New Century’s stock rose 27% during the year, closing at $13.38 a share. It has since lost 12%, closing Thursday at $11.75 in Nasdaq trading.

Cole and Morrice each received a 10% increase in salary, to $281,600. Each also received a $600,893 bonus, which was up 77% from 1997.