Doug Black has been the CEO of SiteOne Landscape Supply, Inc. (NYSE:SITE) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for SiteOne Landscape Supply.
How Does Total Compensation For Doug Black Compare With Other Companies In The Industry?
At the time of writing, our data shows that SiteOne Landscape Supply, Inc. has a market capitalization of US$6.8b, and reported total annual CEO compensation of US$4.1m for the year to December 2019. That's a notable increase of 16% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$798k.
On comparing similar companies from the same industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$6.2m. Accordingly, SiteOne Landscape Supply pays its CEO under the industry median. Moreover, Doug Black also holds US$54m worth of SiteOne Landscape Supply stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that SiteOne Landscape Supply allocates a smaller portion of compensation to salary in comparison 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.
A Look at SiteOne Landscape Supply, Inc.'s Growth Numbers
Over the past three years, SiteOne Landscape Supply, Inc. has seen its earnings per share (EPS) grow by 33% per year. It achieved revenue growth of 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has SiteOne Landscape Supply, Inc. Been A Good Investment?
We think that the total shareholder return of 107%, over three years, would leave most SiteOne Landscape Supply, 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.
As we noted earlier, SiteOne Landscape Supply pays its CEO lower than the norm for similar-sized companies belonging to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Doug deserves a raise!
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for SiteOne Landscape Supply that investors should think about before committing capital to this stock.
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.
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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