Key Insights

• APi Group's Annual General Meeting to take place on 14th of June
• Total pay for CEO Russ Becker includes US$1.43m salary
• The total compensation is similar to the average for the industry
• Over the past three years, APi Group's EPS grew by 22% and over the past three years, the total shareholder return was 67%

It would be hard to discount the role that CEO Russ Becker has played in delivering the impressive results at APi Group Corporation (NYSE:APG) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 14th of June. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

How Does Total Compensation For Russ Becker Compare With Other Companies In The Industry?

At the time of writing, our data shows that APi Group Corporation has a market capitalization of US$10b, and reported total annual CEO compensation of US$10m for the year to December 2023. Notably, that's an increase of 17% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

On comparing similar companies in the American Construction industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$11m. From this we gather that Russ Becker is paid around the median for CEOs in the industry. What's more, Russ Becker holds US$118m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. In APi Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

APi Group Corporation's Growth

APi Group Corporation's earnings per share (EPS) grew 22% per year over the last three years. Its revenue is up 3.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has APi Group Corporation Been A Good Investment?

Boasting a total shareholder return of 67% over three years, APi Group Corporation has done well by shareholders. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for APi Group that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.