In This Article:
Frank Heard has been the CEO of Gibraltar Industries, Inc. (NASDAQ:ROCK) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Frank Heard’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Gibraltar Industries, Inc. has a market cap of US$1.2b, and is paying total annual CEO compensation of US$6.2m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$793k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.3m.
Thus we can conclude that Frank Heard receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gibraltar Industries, Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Gibraltar Industries has changed from year to year.
Is Gibraltar Industries, Inc. Growing?
Gibraltar Industries, Inc. has increased its earnings per share (EPS) by an average of 63% a year, over the last three years (using a line of best fit). Its revenue is up 6.1% over last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Gibraltar Industries, Inc. Been A Good Investment?
I think that the total shareholder return of 69%, over three years, would leave most Gibraltar Industries, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared the total CEO remuneration paid by Gibraltar Industries, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.