John Douglas became the CEO of Computer Programs and Systems, Inc. (NASDAQ:CPSI) in 2006, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Computer Programs and Systems pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Computer Programs and Systems
Comparing Computer Programs and Systems, Inc.'s CEO Compensation With the industry
According to our data, Computer Programs and Systems, Inc. has a market capitalization of US$385m, and paid its CEO total annual compensation worth US$1.4m over the year to December 2019. Notably, that's a decrease of 22% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$630k.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$834k. This suggests that John Douglas is paid more than the median for the industry. Furthermore, John Douglas directly owns US$6.4m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$630k | US$630k | 46% |
| Other | US$746k | US$1.1m | 54% |
| Total Compensation | US$1.4m | US$1.8m | 100% |
Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. According to our research, Computer Programs and Systems has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Computer Programs and Systems, Inc.'s Growth Numbers
Computer Programs and Systems, Inc.'s earnings per share (EPS) grew 51% per year over the last three years. It saw its revenue drop 2.9% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Computer Programs and Systems, Inc. Been A Good Investment?
Since shareholders would have lost about 4.8% over three years, some Computer Programs and Systems, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.