Paul Isabella has been the CEO of Beacon Roofing Supply, Inc. (NASDAQ:BECN) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Paul Isabella’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Beacon Roofing Supply, Inc. has a market cap of US$2.3b, and is paying total annual CEO compensation of US$3.3m. (This is based on the year to September 2018). That’s less than last year. While we always look at total compensation first, we note that the salary component is less, at US$837k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$3.5m.
So Paul Isabella receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Beacon Roofing Supply, below.
Is Beacon Roofing Supply, Inc. Growing?
Over the last three years Beacon Roofing Supply, Inc. has shrunk its earnings per share by an average of 10% per year (measured with a line of best fit). Its revenue is up 56% over last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has Beacon Roofing Supply, Inc. Been A Good Investment?
With a three year total loss of 16%, Beacon Roofing Supply, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Remuneration for Paul Isabella is close enough to the median pay for a CEO of a similar sized company .
The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don’t think the compensation is modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Beacon Roofing Supply (free visualization of insider trades).
If you want to buy a stock that is better than Beacon Roofing Supply, this free list of high return, low debt companies is a great place to look.
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