In This Article:
In 2011 Paul Isabella was appointed CEO of Beacon Roofing Supply, Inc. (NASDAQ:BECN). 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Beacon Roofing Supply
How Does Paul Isabella’s Compensation Compare With Similar Sized Companies?
Our data indicates that Beacon Roofing Supply, Inc. is worth US$2.1b, and total annual CEO compensation is US$3.5m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$773k. 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$3.7m.
That means Paul Isabella receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Beacon Roofing Supply has changed from year to year.
Is Beacon Roofing Supply, Inc. Growing?
Beacon Roofing Supply, Inc. has increased its earnings per share (EPS) by an average of 6.1% a year, over the last three years It achieved revenue growth of 47% over the last year.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn’t shabby. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives!
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Beacon Roofing Supply, Inc. Been A Good Investment?
Given the total loss of 24% over three years, many shareholders in Beacon Roofing Supply, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Paul Isabella is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Beacon Roofing Supply (free visualization of insider trades).