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How Should Investors Feel About National General Holdings Corp.'s (NASDAQ:NGHC) CEO Pay?

Simply Wall St

Barry Karfunkel has been the CEO of National General Holdings Corp. (NASDAQ:NGHC) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for National General Holdings

How Does Barry Karfunkel's Compensation Compare With Similar Sized Companies?

Our data indicates that National General Holdings Corp. is worth US$2.5b, and total annual CEO compensation was reported as US$5.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$925k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$4.9m.

That means Barry Karfunkel receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at National General Holdings has changed over time.

NasdaqGM:NGHC CEO Compensation, February 17th 2020

Is National General Holdings Corp. Growing?

Over the last three years National General Holdings Corp. has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). In the last year, its revenue is up 11%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has National General Holdings Corp. Been A Good Investment?

Given the total loss of 11% over three years, many shareholders in National General Holdings Corp. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Barry Karfunkel is close enough to the median pay for a CEO of a similar sized company .

We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. So you may want to check if insiders are buying National General Holdings shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.