The Chief Executive Officer of LifeMD, Inc. (LFMD), a direct-to-patient telehealth company, is also the Chairman of the Board which recently signed off on a new, easier-to-attain, bonus metric for the boss’s dad, who has also recently been given multiple significant pay raises.

LifeMD CEO Justin Schreiber, a former investor relations (IR) consultant, spends just ninety-percent of his time running the company and has increasingly relied on his father Brian to handle logistics.

In May 2024, Brian Schreiber was awarded a 59.8% salary increase, his second in as many years.

Between December 2023 and May 2024, Schreiber’s salary increased 196.2%.

LifeMD’s latest quarterly filing reveals Brian Schreiber’s bonus agreement— which was not previously disclosed in the company’s latest annual report or proxy statement— has been modified in a manner that makes it more likely the bonus will be awarded.

Previously, Brian Schreiber’s bonus stock options vested only if LifeMD achieved an undisclosed Operating income (pre-tax earnings) target. That metric— which is reduced by recurring, operating expenses— has now been swapped for Adjusted EBITDA, which excludes a bevy of costs and is the metric on which forty-percent of executive bonuses are based.

In 2024— a year in which the SEC scrutinized the firm’s non-GAAP accounting— LifeMD posted an Operating loss of $16.7 million. However, after excluding a host of expenses like insurance and financial statement preparation costs, among others, LifeMD posted Adjusted EBITDA of $7.3 million— enough to earn Schreiber’s father and other executives 100% of their target bonus.

Like son, it now appears that father will benefit financially from less stringent bonus metrics.

With an Enterprise Value (EV) of approximately $312 million, LifeMD is priced as if it will grow annual sales to more than $2.2 billion, up from an estimated $253 million in 2025. To justify its current share price of $6.83 our Reverse DCF— which quantifies investor expectations embedded in the current share price— indicates LifeMD must:

—Grow sales 28.5% annually between 2027-2034, faster than the company’s estimated 2025 and 2026 sales growth of 19.1% and 17.4%, respectively
—Increase NOPAT margin to 5.5%, versus our 2024 estimate of 3.28% and three-year average estimate of (9.68%)
—Increase Invested Capital (IC) Turns to 2.9, up from our 2024 estimate of 2.6 and three-year average estimate of 1.98

Notably, the current share price also implies LifeMD increases Return on Invested Capital (ROIC) to 15.95% from our 2024 estimate of 8.58% and three-year average estimate of (12.68%):