Here's What We Think About Computer Programs and Systems Inc's (NASDAQ:CPSI) CEO Pay

John Douglas became the CEO of Computer Programs and Systems Inc (NASDAQ:CPSI) in 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Computer Programs and Systems

How Does John Douglas's Compensation Compare With Similar Sized Companies?

Our data indicates that Computer Programs and Systems Inc is worth US$346m, and total annual CEO compensation is US$1.9m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$630k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.6m.

So John Douglas receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.

The graphic below shows how CEO compensation at Computer Programs and Systems has changed from year to year.

Is Computer Programs and Systems Inc Growing?

Computer Programs and Systems Inc has reduced its earnings per share by an average of 110% a year, over the last three years. In the last year, its revenue is up 8.6%.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Computer Programs and Systems Inc Been A Good Investment?

Since shareholders would have lost about 43% over three years, some Computer Programs and Systems Inc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Computer Programs and Systems shares (free trial).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.