Bill Brunson became the CEO of The National Security Group, Inc. (NASDAQ:NSEC) in 2000. 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.

See our latest analysis for National Security Group

How Does Bill Brunson's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that The National Security Group, Inc. has a market cap of US$40m, and reported total annual CEO compensation of US$334k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$257k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$523k.

Most shareholders would consider it a positive that Bill Brunson takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at National Security Group has changed over time.

Is The National Security Group, Inc. Growing?

The National Security Group, Inc. has reduced its earnings per share by an average of 8.2% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 1.1%.

Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

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

With a three year total loss of 0.6%, The National Security Group, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

The National Security Group, Inc. is currently paying its CEO below what is normal for companies of its size.

The compensation paid to Bill Brunson is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Shareholders may want to check for free if National Security Group insiders are buying or selling shares.