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Jerry Volas has been the CEO of TopBuild Corp. (NYSE:BLD) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Jerry Volas's Compensation Compare With Similar Sized Companies?
Our data indicates that TopBuild Corp. is worth US$2.8b, and total annual CEO compensation is US$4.2m. (This number is for the twelve months until December 2018). That's a fairly small increase of 3.6% on year before. We think total compensation is more important but we note that the CEO salary is lower, at US$831k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.3m.
So Jerry Volas receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 TopBuild has changed from year to year.
Is TopBuild Corp. Growing?
TopBuild Corp. has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 28%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has TopBuild Corp. Been A Good Investment?
Most shareholders would probably be pleased with TopBuild Corp. for providing a total return of 118% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Jerry Volas is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling TopBuild (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.