Should You Be Pleased About The CEO Pay At SiteOne Landscape Supply, Inc.'s (NYSE:SITE)

In this article:

Doug Black has been the CEO of SiteOne Landscape Supply, Inc. (NYSE:SITE) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for SiteOne Landscape Supply

How Does Doug Black's Compensation Compare With Similar Sized Companies?

Our data indicates that SiteOne Landscape Supply, Inc. is worth US$3.9b, and total annual CEO compensation was reported as US$3.5m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$750k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$4.9m.

So Doug Black is paid around the average of the companies we looked at. 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 SiteOne Landscape Supply has changed over time.

NYSE:SITE CEO Compensation, January 20th 2020
NYSE:SITE CEO Compensation, January 20th 2020

Is SiteOne Landscape Supply, Inc. Growing?

SiteOne Landscape Supply, Inc. has increased its earnings per share (EPS) by an average of 92% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has SiteOne Landscape Supply, Inc. Been A Good Investment?

Most shareholders would probably be pleased with SiteOne Landscape Supply, Inc. for providing a total return of 155% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Remuneration for Doug Black is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying SiteOne Landscape Supply shares with their own money (free access).

Important note: SiteOne Landscape Supply may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.

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