Jerry Volas became the CEO of TopBuild Corp. (NYSE:BLD) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jerry Volas’s Compensation Compare With Similar Sized Companies?
According to our data, TopBuild Corp. has a market capitalization of US$2.8b, and pays its CEO total annual compensation worth US$4.2m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$831k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.2m.
That means Jerry Volas receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at TopBuild, below.
Is TopBuild Corp. Growing?
Over the last three years TopBuild Corp. has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). It achieved revenue growth of 28% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Has TopBuild Corp. Been A Good Investment?
I think that the total shareholder return of 116%, over three years, would leave most TopBuild Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Jerry Volas is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if TopBuild insiders are buying or selling shares.
Important note: TopBuild may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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