Toll Brothers Inc. (NYSE: TOL) is quickly becoming a model of how not to do executive compensation. The company's chief executive Robert Toll, who ranks among the highest paid CEOs in the nation, may have taken a cut in total compensation for 2007, but his bonus plan is being changed to allow him to gain regardless of his performance. Mr. Toll took home $7.1 million in total compensation for 2007, according to an 8-K filing with the SEC, which has many fuming as the company's shares fell from its highs of $33.80 to $15.49 before rebouding now to around $22 amid continuing gloom in the housing market.

Mr. Toll's current bonus plan is strictly dependent on financial performance and is linked, albeit complicatedly, to a rise in the company's stock price. The new plan will give Toll 2% of the company's pretax income before his bonus in order to "compensate the CEO fairly ... mindful of the current severe downturn in the homebuilding industry". His bonus will then depend on a host of other factors, including gross revenue and cash flow to the issuance of new debt, acquisitions, cost cutting, and even vague factors like worker morale.

The CEO didn't get a bonus in 2007 on top of his $1.3 million salary, but did get nearly $95,000 in other compensation, including $26,000 in auto and gas expenses, $35,000 in tax and financial statement prep, $2,200 in telecom and Internet payment, and $1,500 in club dues. He was also awarded $5.67 million in stock options and booked $339,500 worth of a personal jet using company funds. Meanwhile, the company's director compensation was also shown to be $5,000 for each full day board meeting, $2,500 for a half day, and $1,750 for a meeting by phone or committee meeting.

How's that for a day's work?