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<SEC-DOCUMENT>0000950123-10-022553.txt : 20100601
<SEC-HEADER>0000950123-10-022553.hdr.sgml : 20100531
<ACCEPTANCE-DATETIME>20100309160201
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-10-022553
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100309

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAVCO INDUSTRIES INC
		CENTRAL INDEX KEY:			0000278166
		STANDARD INDUSTRIAL CLASSIFICATION:	MOBILE HOMES [2451]
		IRS NUMBER:				860214910
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1001 N. CENTRAL AVE
		STREET 2:		SUITE 800
		CITY:			PHOENIX
		STATE:			AZ
		ZIP:			85004
		BUSINESS PHONE:		602-256-6263

	MAIL ADDRESS:	
		STREET 1:		1001 N. CENTRAL AVE
		STREET 2:		SUITE 800
		CITY:			PHOENIX
		STATE:			AZ
		ZIP:			85004
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>Correspondence</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">March&nbsp;9, 2010
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>By Federal Express and EDGAR</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Mr.&nbsp;John Hartz<BR>
Senior Assistant Chief Accountant<BR>
Division of Corporation Finance<BR>
Securities and Exchange Commission<BR>
100 F Street, N.E.<BR>
Washington D.C. 20549

</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Cavco Industries, Inc.<br>
File #0-8822</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dear Mr.&nbsp;Hartz:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On behalf of Cavco Industries, Inc. (&#147;Cavco&#148; or the &#147;Company&#148;), we are providing the following
responses to the additional comments of the staff (the &#147;Staff&#148;) of the Securities and Exchange
Commission (the &#147;Commission&#148;) by letter dated February&nbsp;23, 2010. For your convenience, the
headings and paragraph numbers in our letter correspond to the headings and paragraph numbers in
the Staff&#146;s letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Definitive Proxy Material on Schedule&nbsp;14A filed on May&nbsp;21, 2009</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Compensation Discussion and Analysis, page 12</B></U><BR>
<U><B>Benchmarking, page 13</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;<I>We note your response to comment eight in our letter dated January&nbsp;28, 2010, particularly your
statement that your compensation committee determined that the compensation of your senior
management was below that paid to executives of peer group companies, many of which performed worse
than Cavco. If you use this or similar comparative statements in the future, please disclose where
the compensation paid to your executives fell with respect to the compensation paid to executives
at peer companies, clarify the basis on which you are comparing compensation (e.g., aggregate
compensation or individual compensation for each named executive officer) and identify the metric
or metrics against which company performance was measured and compared. Finally, please see our
comment below regarding long-term compensation. To the extent your long-term compensation awards
are based on benchmarking, you should revise your future benchmarking disclosure accordingly.</I>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Cavco Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company acknowledges the Staff&#146;s comment regarding comparative statements and will make
the requested disclosure in future filings. Benchmarking does not apply to prior long-term
compensation awards; however, to the extent future long-term awards are based on benchmarking, we
will revise our disclosure accordingly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Components of Executive Compensation</B></U><BR>
<U><B>Base Salary, page 14</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">2.&nbsp;<I>We note your response to comment nine in our letter dated January&nbsp;28, 2010, particularly the
names of the two companies that were used for peer group comparisons but were not identified in
your disclosure. In future filings with benchmarking disclosure, please disclose the names of all
companies that comprise the peer group.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Cavco Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company acknowledges the Staff&#146;s comment and will make the requested disclosure in future
filings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Incentive Bonus, page 14</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.&nbsp;<I>We note your response to comment ten in our letter dated January&nbsp;28, 2010. Your response does
not provide the information that we requested and largely duplicates the disclosure in your proxy
statement. Please provide us with the following information:</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>An explanation as to why your board replaced the Original Plan with the Revised
Plan.</I></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>A materially complete analysis of the board&#146;s or compensation committee&#146;s evaluation
of Mr.&nbsp;Urness&#146; performance for fiscal year 2009. It is not sufficient to simply note
that an evaluation occurred. Depending on that nature of the evaluation, to the extent
relevant you may wish to address one or more of the following questions: What aspects
of Mr.&nbsp;Urness&#146; performance were considered? How was his performance evaluated? What
was the assessment of that evaluation and how did that assessment relate to the awards
Mr.&nbsp;Urness received?</I></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>An explanation as to why Mr.&nbsp;Urness received a second award of $24,000 seven days
after his first award of $36,000. In doing so, please explain what you mean by
&#147;further analysis&#148; you refer to in your response.</I></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Page 3

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><I>Also, if material, please tell us the relative weights given to Mr.&nbsp;Urness&#146; overall
performance versus his assumption of the human resources duties during the year. Please see Item&nbsp;</I><I>402(b)(1)(v)</I><I> of Regulation&nbsp;S-K which requires that a filer disclose how it determined the
amount and formula for each element of compensation.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B><I>Cavco Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company acknowledges the Staff&#146;s comments and will endeavor in future filings to provide a
more detailed analysis. With respect to the Staff&#146;s specific questions raised in its comment, for
your convenience, the bullets below correspond to the bullets in the comment:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On May&nbsp;12, 2009, the Board replaced the Original Plan with the Revised Plan
because the bonus criteria established by the Original Plan was based on the Company&#146;s
pretax income. As a result, due to the current economic climate, Mr.&nbsp;Urness would not
have been eligible to receive a bonus under the Original Plan. After a thorough
discussion on this issue the Board determined that even though Mr.&nbsp;Urness was not eligible
for a bonus under the criteria set forth in the Original Plan, he should receive a bonus
for his overall performance in fiscal year 2009 (described in more detail below).</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On May&nbsp;12, 2009, during the Board&#146;s discussion of the Original Plan and the fact
that Mr.&nbsp;Urness was not eligible for a bonus under the criteria established by the
Original Plan, the Board discussed Mr.&nbsp;Urness&#146; overall 2009 performance at the Company.
This discussion included Mr.&nbsp;Urness&#146;s oversight of the accounting department; his
development and training of new hires; and his special project corporate development work,
such as analysis of acquisition candidates. The Board concluded that although Mr.&nbsp;Urness
did not meet the criteria set forth in the Original Plan, his performance was deserving of
a bonus. There were no specific performance criteria or objectives evaluated by the
Board; rather, the Board considered his overall role at the Company in fiscal year 2009
and his general performance in carrying out the duties he was assigned. Based on this
discussion, the Board adopted the Revised Plan on May&nbsp;12, 2009, which amended and
superseded the Original Plan. Under the Revised Plan, Mr.&nbsp;Urness had the opportunity to
earn a total bonus of up to $60,000, which the Board determined was an appropriate bonus
opportunity for Mr.&nbsp;Urness. On May&nbsp;12, 2009, the Board awarded Mr.&nbsp;Urness $36,000 under
the Revised Plan based on the discussion and overall evaluation of Mr.&nbsp;Urness&#146; performance
in fiscal year 2009 (described in more detail above).</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On May&nbsp;19, 2009, the Board awarded Mr.&nbsp;Urness an additional $24,000 under the
Revised Plan based upon a further discussion and evaluation of Mr.&nbsp;Urness&#146; performance
during fiscal year 2009, specifically as it related to his assumption of the human
resource functions of the Company. The Board determined that the $36,000 bonus paid on
May&nbsp;12, 2009, did not appropriately compensate Mr.&nbsp;Urness for his assumption of the human
resource functions at the Company. The Board did not consider any specific performance
criteria, objectives or relative weights of overall performance versus the assumption of
human resource functions in this discussion.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Page 4

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Long-Term Compensation, page 15</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">4.&nbsp;<I>We note your response to comment eleven in our letter dated January&nbsp;28, 2010, particularly your
statement that &#147;&#091;f&#093;or purposes of determining the size of the award, the Committee
considered...(ii) the size of grants made to senior executives of peer group companies.&#148; This
process appears to constitute benchmarking for purposes of Item&nbsp;</I><I>402(b)(2)(xiv)</I><I> of Regulation&nbsp;S-K.
With a view toward future disclosure, please tell us what impact the size of the grants made to
senior executives at peer group companies had on the 2009 grant to Mr.&nbsp;Urness. To the extent the
grant to Mr.&nbsp;Urness was tied to a benchmark, please provide an explanation of the reasons for this
deviation. Please refer to Item&nbsp;</I><I>402(b)(2)(xiv)</I><I> of Regulation&nbsp;S-K and Question 118.05 of the
Compliance and Disclosure Interpretations of the staff of the Division of Corporation Finance
concerning Item&nbsp;402 of Regulation&nbsp;S-K, which can be found on our website.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B><I>Cavco Response:</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company acknowledges the Staff&#146;s comments and will make the requested disclosure in future
filings. With respect to the grant reported in the 2009 proxy statement, Mr.&nbsp;Urness was not tied to
a benchmark. The size of grants made to senior executives of peer group companies had a very minor
impact on the size of the award, was not a material factor in making the award, and was used merely
to confirm that an equity award was reasonable and, due to the current economic climate, is a form
of compensation currently used by peer group companies.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>***</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">We acknowledge to the Staff that:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are responsible for the adequacy and accuracy of the disclosure in our filings;</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Staff comments or changes to disclosure in response to Staff comments do not
foreclose the Commission from taking any action with respect to the filing; and</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may not assert Staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United States.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Should the Staff have any additional questions or comments after reviewing this response
letter, we would appreciate an opportunity to discuss these comments or questions with the Staff
prior to the distribution of another comment letter. Please do not hesitate to contact me at
602-283-9216 (or via facsimile at 602-256-6189) with any questions, or if you wish to discuss the
above response.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Page 5

</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ James P. Glew
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">James P. Glew&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">General Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Matthew Feeney, Snell &#038; Wilmer LLP<br>
William Heimerdinger, Ernst &#038; Young LLP<br>
Travis Leach, Snell &#038; Wilmer LLP</TD>
</TR>
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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