Here's Why Rollins, Inc.'s (NYSE:ROL) CEO May Deserve A Raise

The solid performance at Rollins, Inc. (NYSE:ROL) has been impressive and shareholders will probably be pleased to know that CEO Gary Rollins has delivered. At the upcoming AGM on 27 April 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Rollins

How Does Total Compensation For Gary Rollins Compare With Other Companies In The Industry?

According to our data, Rollins, Inc. has a market capitalization of US$17b, and paid its CEO total annual compensation worth US$5.5m over the year to December 2020. Notably, that's an increase of 15% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$9.5m. That is to say, Gary Rollins is paid under the industry median. Furthermore, Gary Rollins directly owns US$198m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Rollins pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Rollins, Inc.'s Growth

Rollins, Inc.'s earnings per share (EPS) grew 13% per year over the last three years. It achieved revenue growth of 7.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Rollins, Inc. Been A Good Investment?

We think that the total shareholder return of 61%, over three years, would leave most Rollins, Inc. shareholders smiling. 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.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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.

So you may want to check if insiders are buying Rollins shares with their own money (free access).

Switching gears from Rollins, 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.

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This article by Simply Wall St is general in nature. 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.
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