DOWNEY FINANCIAL CORP
EXECUTIVE OFFICERS COMPENSATION
<DOCUMENT>
<TYPE>EX-10.11
<SEQUENCE>2
<FILENAME>k022505_8kexhibit1011.htm
<DESCRIPTION>EXECUTIVE OFFICERS COMPENSATION
<TEXT>
<HTML>
<HEAD>
<TITLE>2005 Compensation for the Named Executive Officers</TITLE>
</HEAD>
<BODY>
<TABLE width="100%">

  <TR>
    <TD width="20%"></TD>
    <TD vAlign="top" align="center" width="60%"></TD>
    <TD vAlign=top align=right width="20%"><A href="k022505_8kface.htm#TOC"><FONT
      size=2><B><U>Navigation Links</U></B></FONT></A></TD></TR></TABLE>
<P align=center><FONT size=2><B>EXHIBIT 10.11</B></FONT></P>
<P align=center><FONT size=2><B>2005 Compensation for the Named Executive Officers</B> </FONT></P>
<center>
<table width="100%" align="center" cellspacing="0" border="0">
<TR><TD NOWRAP WIDTH="64%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<P ALIGN="LEFT"><FONT FACE="Arial" SIZE=2><I>&nbsp;</I></FONT></TD>
<TD NOWRAP WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<P align=center><FONT size=2><B>2005 Base Salary</B></FONT></TD>
<TD NOWRAP WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<P ALIGN="CENTER"><FONT FACE="Arial" SIZE=2><I>&nbsp;</I></FONT></TD>
<TD NOWRAP WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<P align=center><FONT size=2><B>2005 Target Bonus</B></FONT></TD>
</TR>
<TR><TD NOWRAP VALIGN="Bottom" COLSPAN=50><HR SIZE=3 NOSHADE></TD></TR>
<TR><TD NOWRAP WIDTH="64%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20>
<P><FONT FACE="Arial" SIZE=2>Daniel D. Rosenthal, President and Chief Executive Officer</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=20>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>$550,000</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=20>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=20>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=20>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=20>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>120%</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20></TD>
</TR>
<TR BGColor="#cceeff"><TD NOWRAP WIDTH="64%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>Thomas E. Prince, Chief Operating Officer and Chief Financial Officer</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>$450,000</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>75%</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR><TD NOWRAP WIDTH="64%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>John R. Gatzke, Chief Lending Officer</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>$375,000</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>100%</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGColor="#cceeff"><TD NOWRAP WIDTH="64%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>Edward A. Luther, Director of Major Loans</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>$215,000</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>70%</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR><TD NOWRAP WIDTH="64%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>Richard D. Grout, Director of Retail Banking</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>$206,000</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
<TD NOWRAP WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16></TD>
<TD NOWRAP WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<P ALIGN="RIGHT"><FONT FACE="Arial" SIZE=2>50%</FONT></TD>
<TD NOWRAP WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<P><FONT FACE="Arial" SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR><TD NOWRAP VALIGN="Bottom" COLSPAN=50><HR SIZE=5 NOSHADE></TD></TR>
</TABLE>
</center>



<TABLE width="100%">

  <TR>
    <TD width="20%"></TD>
    <TD vAlign="top" align="center" width="60%">Page 1
      <HR width="40%" SIZE=2>
    </TD>
    <TD vAlign=top align=right width="20%"><A href="k022505_8kface.htm#TOC"><FONT
      size=2><B><U>Navigation
Links</U></B></FONT></A></TD></TR></TABLE>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
