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In the past three years, the share price of ADMA Biologics, Inc. (NASDAQ:ADMA) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 27 May 2021. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
View our latest analysis for ADMA Biologics
Comparing ADMA Biologics, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that ADMA Biologics, Inc. has a market capitalization of US$226m, and reported total annual CEO compensation of US$2.0m for the year to December 2020. That's a notable increase of 15% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$600k.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.7m. This suggests that ADMA Biologics remunerates its CEO largely in line with the industry average. Moreover, Adam Grossman also holds US$1.7m worth of ADMA Biologics stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$600k | US$536k | 31% |
| Other | US$1.4m | US$1.2m | 69% |
| Total Compensation | US$2.0m | US$1.7m | 100% |
On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. According to our research, ADMA Biologics has allocated a higher percentage of pay to salary in comparison to the wider industry. 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 ADMA Biologics, Inc.'s Growth Numbers
ADMA Biologics, Inc.'s earnings per share (EPS) grew 28% per year over the last three years. In the last year, its revenue is up 33%.
This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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.