U.S. Markets closed

Is TopBuild Corp’s (NYSE:BLD) CEO Being Overpaid?

Jerry Volas became the CEO of TopBuild Corp (NYSE:BLD) in 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for TopBuild

How Does Jerry Volas’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that TopBuild Corp has a market cap of US$1.7b, and is paying total annual CEO compensation of US$3.8m. That’s just a smallish increase of 5.5% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.6m.

That means Jerry Volas receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at TopBuild has changed over time.

NYSE:BLD CEO Compensation November 22nd 18

Is TopBuild Corp Growing?

On average over the last three years, TopBuild Corp has grown earnings per share (EPS) by 45% each year. Its revenue is up 21% over last year.

This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has TopBuild Corp Been A Good Investment?

Boasting a total shareholder return of 64% over three years, TopBuild Corp has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

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. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock.

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.