Why This Matters to Distributors: Builders FirstSource is finalizing a leadership transition that moves its chief talent officer into the top operations role. Outgoing chief operating officer Steve Herron will remain as an adviser for three months after the handoff.
Builders FirstSource has approved compensation for incoming chief operating officer Mike Hiller and will retain outgoing COO Steve Herron as an adviser through March 2027, according to an amended securities filing dated Oct. 16.
Hiller will succeed Herron effective Dec. 31 under a succession plan announced in May. Herron will then serve as a special adviser reporting directly to the company’s chief executive officer from Jan. 1 through March 31.
The filing adds compensation details to the previously announced transition. The board’s compensation committee approved the arrangements Oct. 14.
Hiller will receive an annual base salary of $675,000 beginning Jan. 1 and will be eligible for an annual performance bonus targeted at 125% of his salary, or $843,750. His salary and target bonus would total approximately $1.52 million, with the bonus contingent on meeting goals set annually by the compensation committee.
The arrangement also includes a grant for restricted stock units valued at $700,000, scheduled for Oct. 18. The units will vest in equal annual installments over three years. Hiller will remain eligible for the company’s long-term incentive plan and participate in its executive severance plan.
Herron will receive approximately $20,833 a month during his advisory assignment, or about $62,500 over three months. His outstanding unvested time-based restricted stock units will vest in full when he completes that service.
His outstanding performance-based restricted stock units will vest on a prorated basis, with the amount determined by actual results at the end of the applicable performance periods.
Hiller was serving as chief talent officer when Builders FirstSource named him chief operating officer-designate effective May 18. The company said it amended its original disclosure because his compensation had not been determined when the appointment was announced
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