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Bill Sandbrook has been the CEO of U.S. Concrete, Inc. (NASDAQ:USCR) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bill Sandbrook's Compensation Compare With Similar Sized Companies?
According to our data, U.S. Concrete, Inc. has a market capitalization of US$736m, and pays its CEO total annual compensation worth US$3.3m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$888k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
That means Bill Sandbrook receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at U.S. Concrete has changed from year to year.
Is U.S. Concrete, Inc. Growing?
U.S. Concrete, Inc. has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). It achieved revenue growth of 3.3% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has U.S. Concrete, Inc. Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in U.S. Concrete, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Bill Sandbrook is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling U.S. Concrete shares (free trial).
If you want to buy a stock that is better than U.S. Concrete, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.