In 2000 Bill Brunson was appointed CEO of The National Security Group, Inc. (NASDAQ:NSEC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Bill Brunson’s Compensation Compare With Similar Sized Companies?
Our data indicates that The National Security Group, Inc. is worth US$33m, and total annual CEO compensation is US$341k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$257k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$300k.
So Bill Brunson is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance. Take a look at National Security Group’s growth trajectory by checking out this more detailed historical graph of earnings, revenue and cash flow.
You can see a visual representation of the CEO compensation at National Security Group, below.
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 73% per year. In the last year, its revenue is down -1.2%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Has The National Security Group, Inc. Been A Good Investment?
Given the total loss of 9.2% over three years, many shareholders in The National Security Group, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Bill Brunson is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it’s wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying National Security Group 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.
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 email@example.com.