Michael Braun has been the CEO of FedNat Holding Company (NASDAQ:FNHC) since 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Michael Braun's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that FedNat Holding Company has a market cap of US$248m, and reported total annual CEO compensation of US$2.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.1m.
As you can see, Michael Braun is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean FedNat Holding Company is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at FedNat Holding has changed from year to year.
Is FedNat Holding Company Growing?
On average over the last three years, FedNat Holding Company has grown earnings per share (EPS) by 13% each year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has FedNat Holding Company Been A Good Investment?
With a three year total loss of 6.1%, FedNat Holding Company would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount FedNat Holding Company pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if FedNat Holding insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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