Yahoo Finance Shareholders Would Not Be Objecting To Apogee Enterprises, Inc.'s (NASDAQ:APOG) CEO Compensation And Here's Why
Key Insights
Apogee Enterprises' Annual General Meeting to take place on 20th of June
Salary of US$909.2k is part of CEO Ty Silberhorn's total remuneration
The total compensation is similar to the average for the industry
Apogee Enterprises' EPS grew by 96% over the past three years while total shareholder return over the past three years was 74%
It would be hard to discount the role that CEO Ty Silberhorn has played in delivering the impressive results at Apogee Enterprises, Inc. (NASDAQ:APOG) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
See our latest analysis for Apogee Enterprises
Comparing Apogee Enterprises, Inc.'s CEO Compensation With The Industry
Our data indicates that Apogee Enterprises, Inc. has a market capitalization of US$1.4b, and total annual CEO compensation was reported as US$5.5m for the year to March 2024. That's a notable increase of 36% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$909k.
For comparison, other companies in the American Building industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.5m. This suggests that Apogee Enterprises remunerates its CEO largely in line with the industry average. What's more, Ty Silberhorn holds US$6.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$909k | US$835k | 17% |
Other | US$4.6m | US$3.2m | 83% |
Total Compensation | US$5.5m | US$4.0m | 100% |
Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. There isn't a significant difference between Apogee Enterprises and the broader market, in terms of salary allocation in the overall compensation package. 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 Apogee Enterprises, Inc.'s Growth Numbers
Apogee Enterprises, Inc. has seen its earnings per share (EPS) increase by 96% a year over the past three years. It saw its revenue drop 1.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Apogee Enterprises, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Apogee Enterprises, Inc. for providing a total return of 74% over three years. 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.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Apogee Enterprises that you should be aware of before investing.
Switching gears from Apogee Enterprises, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
