How Is Green Brick Partners' (NASDAQ:GRBK) CEO Compensated?
Jim Brickman became the CEO of Green Brick Partners, Inc. (NASDAQ:GRBK) in 2014, 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 Green Brick Partners
Comparing Green Brick Partners, Inc.'s CEO Compensation With the industry
Our data indicates that Green Brick Partners, Inc. has a market capitalization of US$749m, and total annual CEO compensation was reported as US$2.9m for the year to December 2019. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.
On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$5.3m. Accordingly, Green Brick Partners pays its CEO under the industry median. Furthermore, Jim Brickman directly owns US$26m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$1.4m | US$1.4m | 49% |
Other | US$1.5m | US$1.4m | 51% |
Total Compensation | US$2.9m | US$2.8m | 100% |
Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. According to our research, Green Brick Partners has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Green Brick Partners, Inc.'s Growth Numbers
Green Brick Partners, Inc.'s earnings per share (EPS) grew 41% per year over the last three years. Its revenue is up 28% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Green Brick Partners, Inc. Been A Good Investment?
We think that the total shareholder return of 48%, over three years, would leave most Green Brick Partners, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
As we touched on above, Green Brick Partners, Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. When taking into account the company's strong earnings growth over the past three years, it appears CEO compensation is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Jim's performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Green Brick Partners that investors should look into moving forward.
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.
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