Robert Parahus
Toll BrothersAbout Robert Parahus
Robert Parahus is President and Chief Operating Officer of Toll Brothers, serving since November 1, 2021, and has been with the company since 1986; he is 61 years old and holds a B.S. in Architectural Engineering from Penn State . In fiscal 2024, Toll Brothers achieved record performance—home sales revenue of $10.6B, diluted EPS of $15.01 (+21% YoY), and return on beginning equity of 23.1%—supporting strong incentive payouts under the company’s pay‑for‑performance framework . Company TSR and pay-versus-performance disclosures also reinforce alignment of realizable pay with performance over 2021–2023 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Toll Brothers | President & Chief Operating Officer | 2021–present | Oversees nationwide homebuilding operations; execution of spec strategy and capital efficiency initiatives |
| Toll Brothers | Executive Vice President & Co‑Chief Operating Officer (East) | 2019–2021 | Led eastern regions; advanced expansion and operations efficiency |
| Toll Brothers | Regional President | 2006–2019 | Managed NJ, NY, CT, MA, FL operations; oversight of Toll Integrated Systems (building components) |
| Toll Brothers | Various roles | 1986–2006 | Led expansion into CT and NY; early operational leadership pre-IPO |
External Roles
No external public company directorships are listed for Parahus in Toll Brothers’ executive officers disclosure .
Fixed Compensation
Multi-year compensation summary
| Metric (USD) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary | 987,019 | 1,003,846 | 1,000,000 |
| Stock Awards (RSUs/PRSUs, grant-date fair value) | 793,570 | 1,179,799 | 1,708,593 |
| Non-Equity Incentive Plan Compensation (Annual Bonus) | 1,874,000 | 3,150,000 | 3,811,988 |
| Change in Pension Value & Nonqualified Deferred Comp Earnings | 20,383 | 21,260 | 355,232 |
| All Other Compensation | 30,809 | 30,555 | 32,419 |
| Total Compensation | 3,705,781 | 5,385,460 | 6,908,232 |
FY2024 cash and target bonus detail
| Component | FY2024 |
|---|---|
| Base salary earned | 1,000,000 |
| Target bonus (approved Dec 18, 2023) | 2,730,000 |
| Annual bonus paid | 3,811,988 |
| Payout drivers | PTI metric achieved at 117.5% of target (formulaic component paid 143.8%); qualitative component paid 130% |
SERP and deferred compensation
- SERP annual benefit increased to $162,000 for Parahus in FY2024 .
- Deferred Compensation Plan: executive contribution $230,769; aggregate earnings $73,144; aggregate balance $2,111,988 .
Performance Compensation
FY2024 incentive architecture and results
| Award/Metrics | Weight | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Annual Incentive – PTI Metric | 70% of bonus | $1,717,470,000 | $2,018,108,000 (adjusted) | 143.8% of formulaic component | 1 year |
| Annual Incentive – Qualitative | 30% of bonus | — | — | 130% of qualitative component | 1 year |
| Ops PRSUs – Units Delivered | 1/3 of Ops PRSUs | 10,100 homes | 10,813 homes | 107.1% of target | 25% per year over 4 years; delivery at ~4th anniversary |
| Ops PRSUs – Adjusted Gross Margin | 1/3 of Ops PRSUs | 27.9% | 28.4% | 101.7% of target | 25% per year over 4 years; delivery at ~4th anniversary |
| Ops PRSUs – blended outcome | — | — | — | 111.0% of target shares earned | As above |
| ROE PRSUs (Dec 2021 grant, paid in FY2024) | 1/3 of PRSUs | ROE 20.0% | ROE 22.1% | 110.5% of target; 126.5% of target shares earned | 100% vests at 3 years |
FY2024 equity grants (Dec 20, 2023)
| Grant Type | Threshold (#) | Target (#) | Maximum (#) | Grant-Date Fair Value (USD) |
|---|---|---|---|---|
| Ops PRSUs | 5,214 | 6,952 | 10,428 | 561,096 |
| ROE PRSUs | 2,607 | 3,476 | 5,214 | 305,853 |
| RSUs | — | 10,428 | — | 841,644 |
Delivery and deferral mechanics
- RSUs generally vest in equal annual installments over 4 years but shares are typically delivered at the 4th anniversary, deferring near-term selling pressure; PRSUs follow similar delivery deferral with service-based vesting after performance certification .
Equity Ownership & Alignment
Beneficial ownership and guidelines
| Item | Detail |
|---|---|
| Shares beneficially owned | 56,695 shares; “less than 1%” of common stock |
| Shares outstanding (record date) | 99,888,815 |
| Included within beneficial ownership | 27,172 shares underlying RSUs/options vesting/exercisable within 60 days |
| Stock ownership guidelines | 3× base salary for executive officers other than CEO |
| Hedging/pledging | Prohibited for all directors and executives |
| Clawback | Complies with NYSE 303A.14; restatement-based recovery |
Outstanding unvested awards and vesting cadence (as of Oct 31, 2024)
| Award | Unvested Units | Schedule |
|---|---|---|
| Ops PRSUs (2023 grant; target earned at 111%) | 6,952 target; earned shares vest 25% on Dec 20 of 2024–2027; delivery generally at 4th anniversary (9) | |
| RSUs (2023 grant) | 10,428 | 25% on Dec 1 of 2024–2027 (10) |
| Ops PRSUs (2022 grant) | 9,270 | 33.33% on Dec 19 of 2024–2026 (7) |
| RSUs (2022 grant) | 11,226 | 33.33% on Dec 1 of 2024–2026 (8) |
| Ops PRSUs (2021 grant) | 2,259 | 50% on Dec 20 of 2024 and 2025 (5) |
| RSUs (2021 grant) | 3,723 | 50% on Dec 1 of 2024 and 2025 (6) |
| ROE PRSUs (2022 grant) | 7,483 (assuming max based on interim performance) | 100% scheduled to vest Oct 31, 2025 |
| ROE PRSUs (2023 grant) | 5,214 (assuming max based on interim performance) | 100% scheduled to vest Oct 31, 2026 |
Liquidity events in FY2024
- Options exercised: 13,250 shares; value realized $774,138 .
- RSU/PRSU vesting: 18,292 shares; value realized $1,859,967; deliveries for some awards deferred to future grant anniversaries .
Employment Terms
| Topic | Key provisions |
|---|---|
| Employment agreements | NEOs employed at will; no individualized employment contracts |
| Severance (no change-of-control) | 1.5× (CEO 2.0×) salary + target bonus; prorated bonus based on actual; 18 months COBRA (CEO 24); outplacement up to 18 months |
| Severance (change-of-control; double trigger) | 2.0× (CEO 2.5×) salary + target bonus; prorated target bonus; 24 months COBRA (CEO 30); outplacement up to 24 months |
| Non-compete / non-solicit | One year post-termination for executive officers; confidentiality and non‑disparagement covenants |
| Equity vesting on CoC | Double-trigger vesting for RSUs and PRSUs |
| Clawback | Compliant with NYSE/SEC rules (Section 303A.14) |
| Tax gross-ups | None on perquisites; no excise tax gross-up; 280G “best-net” or cutback |
| Option repricing | Prohibited without shareholder approval |
Investment Implications
- Compensation alignment: The FY2024 bonus and PRSU outcomes directly tied to record profitability (PTI 117.5% of target) and operational metrics (units/margins), with delivery deferrals limiting near-term selling pressure—supportive of retention and performance alignment .
- Retention risk: One-year non-compete and robust severance (including CoC double-trigger equity and 2.0× cash multiple) reduce immediate exit risk, though retirement eligibility features allow vesting to continue post-retirement—monitor age/tenure and vesting cliffs into 2025–2027 .
- Ownership alignment: Beneficial ownership is modest (<1%) but strict 3× salary ownership guidelines, hedging/pledging prohibitions, and clawback lessen misalignment and governance risk; continued dividend-equivalent accrual on RSUs/PRSUs supports shareholder orientation .
- Trading signals: Significant scheduled vesting each December (RSUs/PRSUs) and ROE PRSU tranches in late 2025/2026 create predictable windows for potential sales upon delivery; watch 4th-anniversary delivery dates and 280G “best-net” mechanics near any strategic transactions .
- Execution track record: Multi-year operational milestones (record EPS, ROE>20% for 3 years, margin/S&G&A improvements) under the current team suggest continued focus on capital efficiency and spec strategy—positive for returns but cyclicality remains a core risk .
Say-on-Pay and Governance Notes
- Say‑on‑Pay support: 96% (2024); 95–98% over 2020–2023—investor endorsement of program design .
- Peer group: Large public homebuilders; adjustment in 2025 to replace MDC with M/I Homes reflects ongoing benchmarking discipline .
- Governance safeguards: Double-trigger equity, no tax gross-ups, anti‑hedging/pledging, majority voting, and clawback policy reduce red flags .
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