Key Insights

• Comfort Systems USA to hold its Annual General Meeting on 17th of May

• Salary of US$1.00m is part of CEO Brian Lane's total remuneration

• The total compensation is 39% less than the average for the industry

• Over the past three years, Comfort Systems USA's EPS grew by 33% and over the past three years, the total shareholder return was 322%

The impressive results at Comfort Systems USA, Inc. (NYSE:FIX) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 17th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Comfort Systems USA

How Does Total Compensation For Brian Lane Compare With Other Companies In The Industry?

Our data indicates that Comfort Systems USA, Inc. has a market capitalization of US$12b, and total annual CEO compensation was reported as US$6.6m for the year to December 2023. That's a notable increase of 23% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

For comparison, other companies in the American Construction industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$11m. In other words, Comfort Systems USA pays its CEO lower than the industry median. Furthermore, Brian Lane directly owns US$74m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. Comfort Systems USA pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Comfort Systems USA, Inc.'s Growth Numbers

Comfort Systems USA, Inc.'s earnings per share (EPS) grew 33% per year over the last three years. In the last year, its revenue is up 26%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Comfort Systems USA, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Comfort Systems USA, Inc. for providing a total return of 322% 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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 is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Comfort Systems USA that you should be aware of before investing.

Important note: Comfort Systems USA is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.