Downey Rewards 2 Top Executives

Downey Financial Corp., the largest thrift in Southern California, boosted the pay of its top two executives by more than 50% last year, but unlike most executive raises these days, stock options didn’t play much of a role.

The raises came mostly from an increase in the executives’ base salary and bonus.

Daniel D. Rosenthal, Downey’s president and chief executive, received total compensation last year of $558,540, or about $187,000 more than he was paid in 1998. Most of the increase came from his $300,000 bonus, which doubled last year.

Paul G. Woollatt, the thrift’s chief operating officer, saw his total compensation increase 62% to $519,859, including a $200,000 bonus.

The Newport Beach thrift said it decided to boost the executives’ pay to stay competitive with other financial institutions.

Downey’s net income, which was used as a factor in determining the bonuses, rose 10% last year.

Shareholders didn’t fare as well. The company’s stock dropped 20% last year. Many other financial institutions also saw their stock prices fall last year.