Bruce Kelley has been the CEO of EMC Insurance Group Inc (NASDAQ:EMCI) since 1992. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Bruce Kelley’s Compensation Compare With Similar Sized Companies?
Our data indicates that EMC Insurance Group Inc is worth US$503m, and total annual CEO compensation is US$2m. That’s less than last year. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$2m.
As you can see, Bruce Kelley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean EMC Insurance Group Inc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at EMC Insurance Group has changed over time.
Is EMC Insurance Group Inc Growing?
EMC Insurance Group Inc has reduced its earnings per share by an average of 21% a year, over the last three years. Its revenue is up 2.5% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has EMC Insurance Group Inc Been A Good Investment?
EMC Insurance Group Inc has not done too badly by shareholders, with a total return of 4.0%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We examined the amount EMC Insurance Group Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
And shareholder returns are decent but not great. So we doubt many shareholders would consider the CEO pay to be particularly modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling EMC Insurance Group Inc (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.