Bill Brunson became the CEO of The National Security Group, Inc. (NASDAQ:NSEC) in 2000. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for National Security Group
How Does Bill Brunson’s Compensation Compare With Similar Sized Companies?
Our data indicates that The National Security Group, Inc. is worth US$30m, and total annual CEO compensation is US$334k. (This figure is for the year to December 2018). That’s actually a decrease on the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$257k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$431k.
So Bill Brunson is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at National Security Group, below.
Is The National Security Group, Inc. Growing?
On average over the last three years, The National Security Group, Inc. has shrunk earnings per share by 68% each year (measured with a line of best fit). Its revenue is down -1.2% over last year.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don’t have analyst forecasts, 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 26% 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.
In Summary…
Bill Brunson is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Whatever your view on compensation, you might want to check if insiders are buying or selling National Security Group shares (free trial).
If you want to buy a stock that is better than National Security Group, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.