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In 2000 Bill Brunson was appointed CEO of The National Security Group, Inc. (NASDAQ:NSEC). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Bill Brunson's Compensation Compare With Similar Sized Companies?
According to our data, The National Security Group, Inc. has a market capitalization of US$28m, and pays its CEO total annual compensation worth US$334k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$257k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$462k.
That means Bill Brunson receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at National Security Group has changed from year to year.
Is The National Security Group, Inc. Growing?
Over the last three years The National Security Group, Inc. has shrunk its earnings per share by an average of 48% per year (measured with a line of best fit). In the last year, its revenue is up 2.6%.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has The National Security Group, Inc. Been A Good Investment?
Given the total loss of 39% over three years, many shareholders in The National Security Group, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Bill Brunson is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! Shareholders may want to check for free if National Security Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.