Eric Lipar on compensation
From A Journey Into Homebuilding | From The Ground Up EP.1 · · From The Ground Up
“In sales, we pride ourselves on paying above average commission for the industry. If you are looking like we are to hire top producing salespeople... it needs to be a six-figure job and above because those individuals are currently making that right now. So we set up our compensation plan, we set up the standards, we set up the expectations based on the total compensation that we're looking to recruit people into.”
On , Eric Lipar, Chairman & Chief Executive Officer at LGI HOMES INC, spoke about compensation during A Journey Into Homebuilding | From The Ground Up EP.1 on From The Ground Up.
About Eric Lipar
Eric Lipar, chairman and CEO of LGI Homes, has described the company's business model as focused on first-time homebuyers, with over 90 percent of its customers coming from apartments. He has stated that LGI Homes is a "100 percent spec builder" that builds homes in advance of sales so customers can move in within 30 days. Lipar has emphasized the company's reliance on a "systems-based" approach, saying that the company is "not open-minded to changing the system" and that his biggest responsibility is ensuring people follow it. He has also noted that the company targets renters, requiring that every community has at least 50,000 rental units within 30 miles. In public appearances and earnings calls between 2020 and 2025, Lipar has consistently cited strong demand for housing, attributing it to historically low interest rates and a pandemic-driven desire for homeownership. He has said that the company does not believe the market is in a bubble, arguing that the last housing bubble was caused by oversupply, whereas the current market has "a very low supply of new homes." Lipar has discussed the company's ability to pass rising material and labor costs on to consumers through price increases, and he has noted that LGI Homes raised prices in the majority of its communities in 2020 and planned to do so again. He has also described the company's growth strategy, including raising $50 million in private equity in 2010 and expanding into markets such as Arizona, Florida, and Atlanta based on opportunities in finished lots.