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Our Take On Century Communities' (NYSE:CCS) CEO Salary

Simply Wall St

Dale Francescon became the CEO of Century Communities, Inc. (NYSE:CCS) in 2002, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Century Communities

How Does Total Compensation For Dale Francescon Compare With Other Companies In The Industry?

According to our data, Century Communities, Inc. has a market capitalization of US$1.3b, and paid its CEO total annual compensation worth US$8.9m over the year to December 2019. We note that's an increase of 19% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$850k.

For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.3m. Accordingly, our analysis reveals that Century Communities, Inc. pays Dale Francescon north of the industry median. What's more, Dale Francescon holds US$76m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$850k

US$850k

10%

Other

US$8.0m

US$6.6m

90%

Total Compensation

US$8.9m

US$7.5m

100%

Speaking on an industry level, nearly 27% of total compensation represents salary, while the remainder of 73% is other remuneration. It's interesting to note that Century Communities allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

Century Communities, Inc.'s Growth

Century Communities, Inc.'s earnings per share (EPS) grew 23% per year over the last three years. Its revenue is up 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Century Communities, Inc. Been A Good Investment?

We think that the total shareholder return of 67%, over three years, would leave most Century Communities, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we touched on above, Century Communities, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. Given the strong history of shareholder returns, the shareholders are probably very happy with Dale's performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Century Communities you should be aware of, and 1 of them is significant.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

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