Here's What We Think About Allscripts Healthcare Solutions' (NASDAQ:MDRX) CEO Pay

Paul Black became the CEO of Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) in 2012, 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 Allscripts Healthcare Solutions pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Allscripts Healthcare Solutions

Comparing Allscripts Healthcare Solutions, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Allscripts Healthcare Solutions, Inc. has a market capitalization of US$1.5b, and reported total annual CEO compensation of US$7.5m for the year to December 2019. That's a slight decrease of 3.8% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$4.6m. This suggests that Paul Black is paid more than the median for the industry. Furthermore, Paul Black directly owns US$11m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. Although there is a difference in how total compensation is set, Allscripts Healthcare Solutions more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Allscripts Healthcare Solutions, Inc.'s Growth Numbers

Earnings per share at Allscripts Healthcare Solutions, Inc. are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is down 1.9%.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Allscripts Healthcare Solutions, Inc. Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Allscripts Healthcare Solutions, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, Allscripts Healthcare Solutions, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing for Allscripts Healthcare Solutions, and although earnings growth is steady, it hasn't set the world on fire. And the situation doesn't look all that good when you see Paul is remunerated higher than the industry average. Taking all this into account, it could be hard to get shareholder support for giving Paul a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Allscripts Healthcare Solutions that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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. 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. Simply Wall St has no position in any stocks mentioned.

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