Gayatri Narayan
Builders FirstSourceAbout Gayatri Narayan
Builders FirstSource appointed Gayatri Narayan as President, Technology and Digital Solutions on June 2, 2025, reporting to CEO Peter Jackson. She leads development of digital products, launches digitally enabled business models, and oversees the Paradigm subsidiary. She brings 20+ years in technology leadership spanning PepsiCo (digital product across frontline sales, manufacturing, revenue management), Microsoft (GM, Enterprise Digital Solutions in Communications and Conversational AI), and Amazon (leadership roles across multiple retail categories driving profitability, expansion, and market share). Education: MBA (Chicago Booth), MS Computer Science (University of Illinois at Urbana‑Champaign), BE (Bharathiar University). The role aligns with BLDR’s push into digital (myBLDR.com generated $134M incremental sales in 2024) and a newly formed Board Technology Committee overseeing digital, AI, and cybersecurity.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PepsiCo | Led Digital Product development across frontline sales, manufacturing, and revenue management | Not disclosed | Built and scaled digital products to drive operational and revenue outcomes |
| Microsoft | General Manager, Enterprise Digital Solutions (Communications and Conversational AI) | Not disclosed | Delivered enterprise-scale digital solutions and AI capabilities |
| Amazon | Multiple leadership roles across retail categories | 6+ years | Improved profitability, global expansion, and market share via technology-enabled models |
External Roles
- No public-company directorships or committee roles disclosed for Ms. Narayan.
Fixed Compensation
- Compensation terms for Ms. Narayan were not disclosed in the appointment communication. The press release announcing her role did not include salary, bonus, or grant details.
- Context: BLDR executives do not have individual employment agreements; compensation uses a mix of base salary, annual incentives, and RSUs/PSUs under a “pay-for-performance” framework.
Performance Compensation
BLDR executive incentive structure (2024 Corporate Incentive Plan) – relevant framework likely governs senior officers:
| Metric | Weighting | Threshold | Target | Maximum | 2024 Achievement | Payout (as % of total target bonus) |
|---|---|---|---|---|---|---|
| Corporate Adjusted EBITDA | 70% | $2.24B | $2.80B | ≥$3.36B | $2.33B | 28.7% for most corporate NEOs; 31.6% for West Div. leader |
| Working Capital as % of Sales | 15% | 10.2% | 9.5% | ≤6.8% | 9.0% | 19.2% |
| Safety (Recordable Incident Rate) | 5% | 1.54 | 1.39 | 1.24 | 1.39 | 5.1% for corporate NEOs; 0% for West Div. (division missed threshold) |
| Safety Training | 5% | 85% trained | 90% | 100% | 99.9% trained | 10.0% |
| Respectful & Inclusive Culture (RIC) Training | 5% | 85% trained | 90% | 100% | 99.9% trained | 10.0% |
- Long-term incentives: 50% RSUs (3-year ratable vesting) and 50% PSUs tied to ROIC across 2024–2026 with a +/-10% TSR modifier vs Dow Jones U.S. Construction & Materials Index; PSUs vest after 3 years.
- Equity treatment upon change in control is “double-trigger.”
Equity Ownership & Alignment
- Section 16 status: A Power of Attorney for Section 16 filings was executed by Ms. Narayan on June 2, 2025, indicating insider reporting setup.
- Stock ownership guidelines: Executives are expected to hold stock equal to 3x base salary; unvested RSUs count; five-year compliance window.
- Clawback: Dodd‑Frank compliant recoupment policy (effective Dec 1, 2023) for overpaid performance-based incentives following a restatement.
- Anti‑hedging/anti‑pledging: Prohibits hedging and pledging of company stock without prior written approval of the General Counsel.
- Say‑on‑Pay signals: 2024 Say‑on‑Pay approval “nearly 95%”; 2025 vote results: For 89,925,975; Against 7,021,486; Abstain 1,065,338 (broker non‑votes 5,509,307).
Employment Terms
- Start date and scope: Appointed June 2, 2025 as President, Technology and Digital Solutions; leads digital product development and Paradigm subsidiary.
- Contracting approach: Executives do not have individual employment agreements; BLDR utilizes an Executive and Key Employee Severance Plan for designated executives.
- Severance and change‑of‑control (plan terms, if designated):
- Regular (non‑CIC) termination without cause/for good reason: pro‑rata annual bonus (based on actual results), severance of 2.0x (Tier I) or 1.5x (Tier II) base salary + target bonus, and 24 or 18 months of benefit cost support; pro‑rata vesting of time‑based awards to next vest and performance awards based on actual results. Non‑compete: 24 months (Tier I) or 18 months (Tier II).
- CIC termination (3 months pre to 24 months post): pro‑rata target bonus, 2.5x (Tier I) or 2.0x (Tier II) base salary + target bonus, 30 or 24 months benefit cost support; performance equity measured at target or higher of target/actual as specified. Double‑trigger required.
Compensation Structure Analysis
- Strong performance linkage: Annual incentives weighted 85% to financials (Adjusted EBITDA and working capital), with safety and training metrics; 2024 payouts were below target due to EBITDA underperformance, indicating discipline in pay outcomes.
- Long‑term alignment: 50/50 PSU/RSU mix with ROIC as primary performance metric and TSR modifier; double‑trigger on CIC; no tax gross‑ups.
- Governance support: Technology Committee formed April 1, 2025 to oversee technology strategy, AI, and digital platforms—directly relevant to Ms. Narayan’s mandate.
Equity Ownership & Trading Watch‑Items
- Initial ownership and award grants for Ms. Narayan were not disclosed in the appointment announcement; monitor forthcoming Form 3/4 filings for initial holdings, new‑hire RSUs/PSUs, and any 10b5‑1 plan adoptions.
- Company policy bars hedging/pledging without GC approval and imposes stock ownership guidelines (3x salary), which reduces misalignment and potential selling pressure risk once grants vest.
Performance & Track Record
- Prior roles emphasize scaling enterprise digital products and AI, and deploying technology to drive growth and efficiency, aligning with BLDR’s digital priorities (myBLDR.com launched in early 2024; $134M incremental sales in 2024).
Compensation Committee, Peer Group, and Shareholder Feedback (Context)
- Compensation Committee uses a 19‑company peer group across building products, industrial, and distribution for benchmarking (e.g., Owens Corning, Sherwin‑Williams, Lennar, WESCO, Grainger).
- 2024 Say‑on‑Pay support was “nearly 95%,” and 2025 Say‑on‑Pay garnered 89,925,975 For vs 7,021,486 Against, indicating ongoing shareholder support for pay design.
Investment Implications
- Execution leverage: The creation of a President, Technology and Digital Solutions role plus Board‑level Technology Committee oversight signals sustained investment in digital platforms (e.g., myBLDR.com, Paradigm). Ms. Narayan’s big‑tech and CPG product background should accelerate digital monetization and operational efficiency. Watch for KPIs tied to digital revenue, attach rates, and productivity uplifts.
- Alignment and retention: Expect a new‑hire equity package (RSUs/PSUs) consistent with BLDR practice, stock ownership guidelines (3x salary), clawback, and anti‑hedge/pledge policy—all supportive of alignment and lower near‑term discretionary selling pressure post‑vesting. Monitor Section 16 filings for grant sizes and vesting schedules.
- Comp structure vs performance: The EBITDA/working capital weightings and ROIC‑driven PSUs indicate payouts will track operating performance, de‑risking overpayment if execution lags. This design reduces headline risk and supports credibility with investors if digital ROI is phased.
- Key watch‑items: Forthcoming 8‑K or proxy disclosure of Ms. Narayan’s compensation package and performance goals; Form 4 activity; any 10b5‑1 adoption; quantified digital targets in earnings materials; and integration progress at Paradigm under her leadership.