This article will reflect on the compensation paid to Bill Brunson who has served as CEO of The National Security Group, Inc. (NASDAQ:NSEC) since 2000. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for National Security Group.

See our latest analysis for National Security Group

Comparing The National Security Group, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that The National Security Group, Inc. has a market capitalization of US$32m, and reported total annual CEO compensation of US$330k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$256.6k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$532k. Accordingly, National Security Group pays its CEO under the industry median. What's more, Bill Brunson holds US$5.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. According to our research, National Security Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at The National Security Group, Inc.'s Growth Numbers

The National Security Group, Inc. has reduced its earnings per share by 16% a year over the last three years. In the last year, its revenue changed by just 0.9%.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has The National Security Group, Inc. Been A Good Investment?

Given the total shareholder loss of 11% over three years, many shareholders in The National Security Group, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.