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In 2006 John Douglas was appointed CEO of Computer Programs and Systems, Inc. (NASDAQ:CPSI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Douglas's Compensation Compare With Similar Sized Companies?
Our data indicates that Computer Programs and Systems, Inc. is worth US$381m, and total annual CEO compensation is US$1.8m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$630k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
That means John Douglas receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Computer Programs and Systems has changed over time.
Is Computer Programs and Systems, Inc. Growing?
On average over the last three years, Computer Programs and Systems, Inc. has shrunk earnings per share by 25% each year (measured with a line of best fit). In the last year, its revenue is down -1.8%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Computer Programs and Systems, Inc. Been A Good Investment?
Given the total loss of 27% over three years, many shareholders in Computer Programs and Systems, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
John Douglas 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. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Computer Programs and Systems (free visualization of insider trades).
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 firstname.lastname@example.org. 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.