Frank Mottola
SUPERNUS PHARMACEUTICALSAbout Frank Mottola
Frank Mottola is Senior Vice President of Quality, GMP Operations, Information Technology and Regulatory Affairs at Supernus Pharmaceuticals. He assumed responsibility for Regulatory Affairs in March 2024 and has held escalating leadership roles since joining Supernus in 2005, with over 25 years in pharmaceutical quality and operations. He is 53, holds a B.S. in Biology (Rutgers University) and a B.S. in Business Administration (Walden University) . During 2024, Supernus delivered cumulative TSR of 152.45 and improved Net Earnings to $73.9M with Gross Product Sales of $1,101M, strengthening pay-for-performance linkages that drive NEO incentives .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Supernus Pharmaceuticals | SVP Quality, GMP Operations & IT | 2020–Mar 2024 | Led enterprise quality, manufacturing compliance, and IT; broadened scope to Regulatory Affairs in 2024 . |
| Supernus Pharmaceuticals | VP Quality, GMP Operations & IT | 2017–2020 | Expanded oversight beyond quality into GMP operations and IT modernization . |
| Supernus Pharmaceuticals | VP Quality & GMP Operations | 2014–2017 | Drove GMP readiness and quality system maturation . |
| Supernus Pharmaceuticals | Director of Quality | 2005–2013 | Built foundational quality systems post-formation of Supernus . |
| Able Laboratories | Director of Quality | Pre-2005 | Led quality at a generic pharmaceuticals manufacturer . |
| Ortho Clinical Diagnostics (J&J) | Various positions | Pre-2005 | Quality/operations roles at a global diagnostics company . |
External Roles
- Not disclosed beyond prior employers (no public company directorships noted) .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $342,400 | $352,700 | $378,429 |
| Target Bonus (% of Base) | 35% | 35% | 35% |
| Bonus Paid ($) | $109,080 | $129,361 | $140,001 |
| All Other Compensation ($) | $39,393 | $44,418 | $53,215 (includes life/disability premiums, 401(k) match, ESPP, $255 membership fee reimbursement) |
Performance Compensation
Annual Incentive Design (2024)
| Component | Weighting | Target | Actual (Company) | Payout Basis | Notes |
|---|---|---|---|---|---|
| Company Performance (Corporate Objectives) | 60% | 100% | 110% achieved | Corporate portion funded at 110% | Objectives spanned SPN-830 approval/launch, SPN-812 filings/studies, SPN-817/820/821 milestones, Gross/Net Revenue and adjusted EBITDA goals . |
| Individual Performance | 40% | Not disclosed | Not disclosed | Not disclosed | Individual goals set June 24, 2024 for PSUs; bonus individual assessment not separately disclosed . |
2024 Equity Awards and Vesting Terms
| Grant Date | Instrument | Shares/Units | Exercise Price | Vesting | Grant Date Fair Value |
|---|---|---|---|---|---|
| 02/22/2024 | Stock Options | 25,000 | $27.94 | 25% annually over 4 years | $432,254 |
| 02/22/2024 | RSUs | 5,000 | — | 25% annually over 4 years | $139,700 |
| 06/24/2024 | PSUs | 7,500 | — | Performance-vest on specified objectives within ≤10 years | $201,825 |
2024 PSU Performance Objectives (Individual)
- Obtain FDA approval of SPN-830 by a specified period .
- Manage IT to ensure any cyber-attack does not disrupt business continuity beyond a specified duration through 2026 .
- Finalize an Integrated Development Plan for a specific program with defined criteria by end of 2024 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 141,901 shares; includes 126,750 shares issuable upon options exercisable within 60 days of 04/22/2025; <1% of outstanding shares . |
| Insider Trading/Hedging/Pledging | Company prohibits hedging/monetization transactions and pledging or margin accounts for directors, officers, employees . |
| Ownership Guidelines | Formal guidelines apply to Board and CEO (Directors: $150,000; CEO: 3x salary); no ownership/retention requirement for other NEOs . |
Outstanding Equity (as of 12/31/2024)
| Type | Exercisable | Unexercisable | Exercise Price | Expiration |
|---|---|---|---|---|
| Options | 14,000 | — | $12.98 | 03/01/2026 |
| Options | 15,000 | — | $25.30 | 02/24/2027 |
| Options | 10,000 | — | $39.40 | 02/14/2028 |
| Options | 14,000 | — | $36.75 | 02/22/2029 |
| Options | 22,000 | — | $23.99 | 02/21/2030 |
| Options | 12,750 | 4,250 | $29.61 | 02/19/2031 |
| Options | 9,000 | 9,000 | $32.20 | 02/22/2032 |
| Options | 7,500 | 22,500 | $38.60 | 02/23/2033 |
| Options | — | 25,000 | $27.94 | 02/22/2034 |
| Unvested RSUs | — | 1,500; 5,625; 5,000 units with stated market values | — | Time-vest |
| Unearned PSUs | — | 7,500 units (performance-based) | — | Performance-vest |
2024 Insider Transactions (Liquidity/Pressure Indicators)
| Item | Amount | Value |
|---|---|---|
| Options Exercised | 15,000 shares | $417,743 realized |
| Shares Vested (RSUs/PSUs) | 3,615 shares | $103,103 realized |
Employment Terms
| Provision | Terms |
|---|---|
| Executive Retention Agreement (Severance) | If terminated without cause or resigns for good reason pre-CoC: 12 months base salary and health benefits . |
| Change-in-Control (Double-Trigger) | If terminated on/within 12 months after CoC: 12 months base salary and health benefits, lump-sum most recent annual bonus, and full acceleration of stock-based awards (remain exercisable/payable per award terms) . |
| Estimated Cash Benefits (as of 12/31/2024) | Base salary continuation $377,400; bonus $129,361; benefits $28,807; total $535,568 (same for termination scenarios shown) . |
| Clawback | Incentive Compensation Recoupment Policy (Dodd-Frank/SEC/Nasdaq compliant) applies to executives . |
| Non-Compete/Non-Solicit | Not specifically disclosed for Mr. Mottola; CEO agreement includes non-compete/non-solicit . |
Compensation Structure Analysis
- Mix shift and at-risk pay: 2024 total compensation $1,686,949 with meaningful equity components (Stock Awards $341,525; Options $432,254) and performance-linked cash bonus ($140,001), reinforcing pay-for-performance .
- Equity instruments: Balanced time-based RSUs for retention (4-year vest), options aligned to stock appreciation, and PSUs tied to regulatory, cyber-resilience, and development milestones, increasing performance leverage .
- Corporate performance factor: 2024 Corporate Objectives funded at 110%, boosting company-weighted bonus component; exact individual payout detail not disclosed .
Company Performance Context (Recent)
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|
| Cumulative TSR ($/100 initial) | 106.07 | 122.93 | 150.38 | 122.01 | 152.45 |
| Net Earnings ($M) | 127.0 | 53.4 | 60.7 | 1.3 | 73.9 |
| Gross Product Sales ($M) | 951 | 1,021 | 1,181 | 1,071 | 1,101 |
| Say-on-Pay Approval (%) | — | — | — | >95% (2024 meeting) | — |
Investment Implications
- Alignment: Prohibition on hedging/pledging and option/RSU structures align long-term shareholder interests; PSUs target regulatory approvals and operational resiliency, signaling execution focus across quality, IT, and regulatory domains .
- Retention risk: Double-trigger change-in-control terms with full equity acceleration mitigate retention risk during strategic events; absence of formal ownership guideline for NEOs (non-CEO) modestly reduces forced alignment, though significant unvested equity provides retention hooks .
- Trading signals: 2024 option exercises (15,000 shares) indicate some liquidity-taking; continued large option overhangs with multi-year vesting and long-dated expiries suggest ongoing potential supply but also strong incentives to drive stock appreciation .
- Pay-for-performance: Corporate objectives funded at 110% and PSUs tied to FDA/cyber/development outcomes support a robust pay-performance regimen; operational delivery (e.g., SPN-830 approval/launch milestones) will be key to PSU realization and bonus funding .