In 2011 Paul Isabella was appointed CEO of Beacon Roofing Supply, Inc. (NASDAQ:BECN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Paul Isabella’s Compensation Compare With Similar Sized Companies?
Our data indicates that Beacon Roofing Supply, Inc. is worth US$2.2b, and total annual CEO compensation is US$3.5m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$773k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.6m.
So Paul Isabella is paid around the average of the companies we looked at. 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. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.
The graphic below shows how CEO compensation at Beacon Roofing Supply has changed from year to year.
Is Beacon Roofing Supply, Inc. Growing?
Over the last three years Beacon Roofing Supply, Inc. has grown its earnings per share (EPS) by an average of 6.1% per year. In the last year, its revenue is up 47%.
It’s hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.
Has Beacon Roofing Supply, Inc. Been A Good Investment?
Given the total loss of 20% over three years, many shareholders in Beacon Roofing Supply, Inc. are probably rather dissatisfied, to say the least. 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 .
We would like to see somewhat stronger per share growth. And it’s hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. So you may want to check if insiders are buying Beacon Roofing Supply shares with their own money (free access).
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.