An investigation on behalf of current long term investors in shares of M.D.C. Holdings, Inc. (NYSE: MDC) concerning possible breaches of fiduciary duties related to potential excessive compensation that was awarded to certain senior officers and executives at M.D.C. Holdings, Inc. was announced.

The investigation by a law firm focuses on whether the directors and officers of M.D.C. Holdings Inc harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in M.D.C. Holdings (NYSE:MDC) focuses on possible shareholder claims that certain of M.D.C. Holdings senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.

M.D.C. Holdings CEOs pay rose from roughly $6.5million in 2008 to $9.2million in 2010 and its COO pay increased from about $7.3million in 2008 to $9million in 2010.

However, M.D.C. Holdings shareholders recently expressed their disdain for executive pay packages by voting no on M.D.C. Holdings say on pay provision. M.D.C. Holdings received only 33.4% support for its pay practices at its April 27 annual meeting, according to a company filing.

The investigation concerns possible claims that the prior compensation awarded at M.D.C. Holdings, Inc. (Public, NYSE:MDC) is improper based upon its current operating condition.

M.D.C. Holdings annual Revenue fell from $2.885billion in 2007 to $958.65million in 2010. During 2007 and 2008 M.D.C. Holdings, Inc. had to report substantial Net Losses at $637million for 07 and $380million in 08. For the first quarter in 2011 M.D.C. Holdings, Inc. reported a Net Loss of $19.88million.

Shares of M.D.C. Holdings, Inc. (Public, NYSE:MDC) declined from as high as $87.60 per share in 2005 and traded recently at under $25 per share.

The investigation seeks to determine whether certain senior officers and executives at M.D.C. Holdings, were awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that were excessive or unwarranted based on the M.D.C. Holdings performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.

In fact the CEOs total compensation exceeded the $2.4 million median for the companys industry peers.

Finally the investigation focuses also on possible shareholder claims that would allow NYSE:MDC stockholders to more efficiently influence or control future compensation decisions at M.D.C. Holdings, Inc.