Adam S. Grossman
About Adam S. Grossman
Adam S. Grossman (age 48) is ADMA’s co‑founder, President, Chief Executive Officer and a Class II director; he has served as director since 2007, COO from 2007–2011, and CEO since October 2011; he also served as Interim CFO from April–July 2024. He holds a B.S. in Business Administration (International Business & Marketing) from American University and has 25+ years of blood/plasma industry experience (MedImmune, American Red Cross, National Hospital Specialties, GenesisBPS). In 2024, ADMA delivered record revenue of $426.5M (+65% y/y) and shifted to strong profitability (FY2024 net income $197.7M), while the stock rose 277% from $4.55 (Jan 2, 2024) to $17.15 (Dec 31, 2024); the “pay versus performance” TSR index shows $100 → $379.42 (+279%) in 2024.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ADMA Biologics | President & COO | 2007–Oct 2011 | Co‑founded ADMA; built commercial/operations foundation pre‑CEO. |
| ADMA Biologics | Interim CFO | Apr 2024–Jul 2024 | Finance transition support during CFO change; continuity of capital markets and reporting. |
| National Hospital Specialties / GenesisBPS | EVP | 1994–2011 | Product launches, BD, sales force management across blood/plasma tools. |
| MedImmune | Marketing (RSV/CMV immunoglobulins) | n/a | Commercial experience in immunoglobulins aligned to ADMA’s end‑market. |
| American Red Cross | Biomedical Services (new products) | n/a | Plasma/blood supply chain and product launch experience. |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Plasma Protein Therapeutics Association (PPTA) | Chair, North America Board | Since Sep 2023 | Industry leadership; policy and market visibility. |
Fixed Compensation
- Base salary: $800,000 for 2024 (up from $750,000 in 2023). Target annual bonus: 85% of base for 2024.
- Actual annual bonus paid for 2024 performance: 150% of base ($1,020,000), reflecting 135% corporate goal achievement plus a +15% individual performance adjustment. Paid March 2025.
Performance Compensation
2024 Annual Bonus Metrics and Outcomes
| Metric | Weight | Accelerator | Achievement |
|---|---|---|---|
| Conformance batches completed; FDA‑filed PAS for yield enhancement | 20% | FDA acceptance for PAS | 40% |
| Fill‑finish enhancement FDA submission (prep/file/accept) | 15% | — | 5% |
| Plasma collection cost targets & BioCenters streamlining | 15% | — | 15% |
| Drug substance batches vs internal targets | 15% | Exceed targets → +5% | 20% |
| IT/Finance infra & Mfg document control upgrades by 12/31/24 | 10% | — | 10% |
| Revenue > budget; opex within budget (ASCENIV mix) | 25% | Revenue exceeds budget by Board target → +20% | 45% |
| Total Corporate Achievement | 100% | +45% from accelerators | 135% |
| CEO Individual Adjustment | — | Board discretion (+/‑15%) | +15% → 150% payout |
2024 Long‑Term Incentives (granted)
| Award | Grant Date | Quantity | Fair Value | Vesting | Strike/Term |
|---|---|---|---|---|---|
| RSUs | 2/26/2024 | 557,728 | $3,011,731 | 4 equal annual installments on grant anniversaries | n/a |
| Stock Options | 2/26/2024 | 870,950 | $3,042,274 | 25% at 1‑yr; remaining 75% monthly over next 36 months | $5.40; expires 2/26/2034 |
- Equity grant timing: The company adopted practices beginning Mar 1, 2024 to avoid option grants 4 business days before / 1 day after material disclosures. The 2/26/2024 CEO option grant occurred two business days before FY2023 results/10‑K; disclosed price impact −0.37%.
2024 Realized Equity Activity (vesting/exercises)
| 2024 Activity | Shares | Value |
|---|---|---|
| Options exercised | 626,245 | $8,020,796 |
| RSUs vested | 528,854 | $4,896,754 |
Multi‑Year CEO Compensation (Summary Compensation Table)
| Component ($) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | 636,540 | 750,000 | 800,000 |
| Bonus (legacy column) | 837,351 | 793,125 | — |
| Stock Awards (RSUs, grant‑date FV) | 501,000 | 1,921,878 | 3,011,731 |
| Option Awards (grant‑date FV) | 629,064 | 2,527,844 | 3,042,274 |
| Non‑Equity Incentive (Annual Bonus) | — | — | 1,020,000 |
| All Other Comp (benefits) | 45,545 | 46,802 | 44,729 |
| Total | 2,649,501 | 6,039,649 | 7,918,734 |
Equity Ownership & Alignment
- Beneficial ownership (3/31/2025): 3,670,442 shares (1.5% of outstanding). Components: 1,029,684 directly; 580,957 via Hariden, LLC (managing member); 1,143,426 via Areth, LLC (control person); plus 916,375 options exercisable within 60 days. Excludes 1,626,408 unvested options and 1,032,166 unvested RSUs.
- Shares pledged: 712,326 shares pledged under a secured margin line with JPMorgan Chase Bank dated Jan 2, 2025 (pledging is an alignment risk).
- Outstanding/unvested at 12/31/2024: Unvested RSUs 45,788 (2021), 150,000 (2022), 430,272 (2023), 557,728 (2024); unexercisable options 19,113 (2021, $2.35), 187,500 (2022, $1.67), 645,405 (2023, $3.35), 870,950 (2024, $5.40). Stock price $17.15 on 12/31/2024.
Employment Terms
| Provision | CEO (non‑CIC termination) | CEO (CIC “double trigger”) | Other Key Terms |
|---|---|---|---|
| Severance | 18 months base salary + 1.5x target bonus; 18 months COBRA | 24 months base salary + 2x target bonus; 24 months COBRA | Double‑trigger equity acceleration upon qualifying termination in connection with a change in control; non‑CIC termination provides additional 1 year of vesting on outstanding equity; post‑termination option exercise up to 24 months (subject to 10‑yr term). 280G best‑net cutback; non‑compete, non‑solicit, confidentiality, mutual non‑disparagement. |
| Estimated payouts (12/31/2024 basis) | $20.45M total (incl. equity vesting value) | $45.66M total (incl. equity vesting value) | Based on $17.15/share at 12/31/2024. |
Board Governance
- Role: President & CEO and director (since 2007). Not a member of Audit, Compensation, or Governance & Nominations committees (all‑independent composition).
- Leadership structure: Chairman (Steven A. Elms) is independent and separate from CEO; Board cites separation to enhance oversight and reduce information/control risks.
- Independence and attendance: 5 of 7 directors are independent per Nasdaq; no director attended <75% of meetings in 2024.
- Nominating rights: Dr. Jerrold B. Grossman (Vice Chair; Adam’s father) is nominee of Hariden, LLC (controlled by Adam); Aisling Capital has a designated nominee (Elms) as part of 2012 financing rights.
- Related party transactions: Shared Services Agreement with Areth (controlled by Dr. Grossman and Adam) — $120,000 paid in 2024; purchases of equipment/services from GenesisBPS (owned by Dr. Grossman and Adam) — $0.2M in 2024.
Compensation Committee/Peer Group and Say‑on‑Pay
- Consultants: Radford Aon (most of 2024) and Pay Governance (since Oct 2024); both deemed independent; peer group updated to reflect higher valuation/market cap.
- 2024 peer group (select): Amylyx, ANI, Anika, Aurinia, BioCryst, Catalyst, Coherus, Collegium, Corcept, Deciphera, Dynavax, Eagle, Harmony, ImmunoGen, Ironwood, MiMedx, Mirum, Pacira, Supernus, Travere, Vanda, Vericel.
- Clawback: Adopted Dec 1, 2023, compliant with SEC/Nasdaq; applies to incentive comp after Oct 2, 2023 upon restatement, regardless of misconduct.
- Hedging/shorting: Insider Trading Policy prohibits derivatives/shorting; no standalone “no hedging” policy document.
- 2025 ballot includes Say‑on‑Pay and Say‑on‑Frequency; results not yet disclosed.
Performance & Track Record
- 2024 highlights: Revenue $426.5M (+65% y/y); market cap +$3.1B (to $4.1B); stock +277% in 2024; ending cash >$103M; net cash position after debt repayments; multiple long‑term high‑titer plasma supply contracts (access to ~250 collection centers); FDA Prior Approval Supplement submitted for ~20% yield enhancement (target mid‑2025 approval); “ADMAlytics” AI program implemented; pilot batch of SG‑001 (S. pneumonia hyperimmune) with potential $300–$500M peak revenue.
ADMA Financial Performance (context for pay-for-performance)
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Revenues ($) | 80,943,000 * | 154,080,000 * | 258,215,000 * | 426,454,000 * |
| EBITDA ($) | −52,078,000* | −32,252,000* | 32,764,000* | 147,028,000* |
| Net Income ($) | −71,648,000* | −65,904,000* | −28,239,000* | 197,673,000 * |
| *Values retrieved from S&P Global. |
Vesting Schedules and Potential Selling Pressure
- RSUs vest in four equal annual installments on the grant date anniversaries; 2024 grant implies annual vest events through 2028. Options vest 25% at one year and 75% monthly over the next three years, creating continual monthly unlocks after the one‑year cliff.
- 2024 realized activity included 626,245 options exercised ($8.0M value) and 528,854 RSUs vested ($4.9M value), indicating meaningful liquidity events and potential sell‑to‑cover; future monthly option vesting plus annual RSU cliffs suggest recurring supply.
Risk Indicators & Red Flags
- Share pledging: 712,326 shares pledged to JPMorgan as collateral (margin line); can force selling in drawdown scenarios.
- Related party transactions: Ongoing agreements with Areth and GenesisBPS (controlled by Grossman family entities).
- Grant timing optics: CEO option grant occurred two business days before FY2023 results/10‑K; policy updated in March 2024 to tighten timing.
- Family/nomination ties: Vice Chair (father) with designation rights via Hariden; perceptions of entrenchment risk.
- Late Section 16 filing: One late Form 4 reported for Adam on Jan 5, 2024.
Equity Ownership & Alignment Detail
| Item | Amount/Notes |
|---|---|
| Beneficial ownership | 3,670,442 shares (1.5% of outstanding). |
| Direct holdings | 1,029,684 shares. |
| Indirect holdings | 580,957 (Hariden, LLC); 1,143,426 (Areth, LLC). |
| Options exercisable (≤60 days) | 916,375. |
| Unvested equity | 1,626,408 options; 1,032,166 RSUs (not vesting within 60 days). |
| Pledged shares | 712,326 (JPMorgan secured margin line, 1/2/2025). |
| Outstanding unvested awards (detail) | See Outstanding Equity Awards table (strike prices $1.67–$5.40 vs $17.15 YE24). |
Board Service, Committees, Independence Considerations
- Board service: Director since 2007; CEO since 2011; not on any Board committees (which are fully independent).
- Independence: 5 of 7 directors independent; CEO is a management director; Chair/CEO roles are separated; however, father‑son relationship and nomination rights may raise perceived independence concerns despite formal structures.
Investment Implications
- Alignment and incentives: CEO pay is highly equity‑loaded (options + RSUs) and annual cash bonus scaled to measurable operating and financial KPIs (revenue/opex, manufacturing throughput, FDA process). 2024 payout at 150% aligned with exceptional revenue growth and stock performance.
- Retention and change‑in‑control: Robust CIC protection (2x salary + 2x target bonus plus full equity acceleration) may ensure continuity but creates sizeable potential payouts; outside CIC, severance remains meaningful (1.5x target bonus + 18 months salary) with partial equity vesting credit.
- Trading/flow risks: Significant ongoing vesting cadence, 2024 exercises, and pledged shares could introduce periodic selling pressure; monitor upcoming RSU cliffs (annual through 2028) and monthly option vests.
- Governance watch‑items: Related‑party transactions with entities controlled by the Grossman family and nomination rights warrant continued oversight despite separated Chair/CEO structure and independent committees.
- Execution track record: 2024 execution (65% revenue growth, profitability inflection, supply expansion, yield‑enhancing PAS filed, AI/ops initiatives) supports pay‑for‑performance and may sustain estimate momentum if regulatory and supply milestones are met in 2025.