Stock Analysis

Here's Why Shareholders Will Not Be Complaining About Apogee Enterprises, Inc.'s (NASDAQ:APOG) CEO Pay Packet

NasdaqGS:APOG
Source: Shutterstock

Key Insights

  • Apogee Enterprises' Annual General Meeting to take place on 20th of June
  • CEO Ty Silberhorn's total compensation includes salary of US$909.2k
  • The total compensation is similar to the average for the industry
  • Apogee Enterprises' EPS grew by 96% over the past three years while total shareholder return over the past three years was 74%

It would be hard to discount the role that CEO Ty Silberhorn has played in delivering the impressive results at Apogee Enterprises, Inc. (NASDAQ:APOG) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of June. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Apogee Enterprises

How Does Total Compensation For Ty Silberhorn Compare With Other Companies In The Industry?

At the time of writing, our data shows that Apogee Enterprises, Inc. has a market capitalization of US$1.4b, and reported total annual CEO compensation of US$5.5m for the year to March 2024. Notably, that's an increase of 36% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$909k.

In comparison with other companies in the American Building industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$5.5m. So it looks like Apogee Enterprises compensates Ty Silberhorn in line with the median for the industry. What's more, Ty Silberhorn holds US$6.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20242023Proportion (2024)
Salary US$909k US$835k 17%
Other US$4.6m US$3.2m 83%
Total CompensationUS$5.5m US$4.0m100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. Although there is a difference in how total compensation is set, Apogee Enterprises more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NasdaqGS:APOG CEO Compensation June 14th 2024

A Look at Apogee Enterprises, Inc.'s Growth Numbers

Over the past three years, Apogee Enterprises, Inc. has seen its earnings per share (EPS) grow by 96% per year. In the last year, its revenue is down 1.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Apogee Enterprises, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Apogee Enterprises, Inc. for providing a total return of 74% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Apogee Enterprises that investors should think about before committing capital to this stock.

Switching gears from Apogee Enterprises, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Valuation is complex, but we're helping make it simple.

Find out whether Apogee Enterprises is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we're helping make it simple.

Find out whether Apogee Enterprises is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com