27. Related Party Transactions
27.1 Relationship and transactions with joint venture entity
In July 2022, the Company entered into a joint venture agreement with the University of Colorado Anschutz Medical Campus and UCHealth and created a separate legal entity, OncoVerity, Inc., which is focused on optimizing and advancing the development of cusatuzumab, a novel anti-CD70 antibody, in acute myeloid leukemia (AML). The Company contributed $2 million in 2022 and $13 million in 2023. The investment has been accounted under IAS 28 Investment in associates and joint ventures using the equity method of accounting and has been designated as “investment in joint venture” in the consolidated statements of financial position. The share of net loss resulting from investment in joint ventures is presented in consolidated statements of profit or loss and the consolidated statements of other comprehensive income (loss) in line “Loss from investment in joint ventures”. The cash contributions made by the Company to the Joint Venture is reported under Cash flow from investing activities under “Investment in joint venture”.
27.2 Relationship and transactions with subsidiaries
See note 31 for an overview of the consolidated companies of the group, which are all wholly-owned subsidiaries of argenx SE.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.
27.3 Relationship and transactions with key personnel
The Company’s key management personnel consists of the members of the management team and the members of the board of directors.
Remuneration of key management personnel
On December 31, 2023, the senior management consisted of 8 members: Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Scientific Officer, General Counsel, Chief Medical Officer, Vice President Corporate Development and Strategy and Global Head of Quality Assurance. They provide their services on a full-time basis.
On December 31, 2023, the board of directors consisted of 9 members: Peter Verhaeghe, Don deBethizy, Pamela M. Klein, A.A. Rosenberg, James M. Daly, Camilla Sylvest, Ana Cespedes, Steve Krognes and Tim Van Hauwermeiren.
Only the Chief Executive Officer is a member of both the senior management team and the board of directors. The Chief Executive Officer does not receive any remuneration for his board membership, as this is part of his total remuneration package in his capacity as member of the senior management team.
The remuneration package of the members of key management personnel comprises:
|
|
Year Ended December 31, |
||||
|---|---|---|---|---|---|---|
(in thousands of $, except for the number of stock options & RSUs) |
|
2023 |
|
2022 |
|
2021 |
Remuneration of key management personnel |
|
|
|
|
|
|
Short-term benefits for senior management members as a group |
|
|
|
|
|
|
Gross salary |
|
4,161 |
|
4,199 |
|
3,465 |
Variable pay |
|
2,816 |
|
3,077 |
|
2,020 |
Employer social security |
|
807 |
|
1,015 |
|
789 |
Other short term benefits |
|
545 |
|
372 |
|
274 |
Termination Benefits |
|
– |
|
– |
|
382 |
Post-employment benefits for senior management members as a group |
|
167 |
|
104 |
|
150 |
Cost of stock options granted in the year for senior management members as a group |
|
27,983 |
|
18,393 |
|
15,060 |
Cost of restricted stock units granted in the year for senior management members as a group |
|
11,694 |
|
9,594 |
|
8,025 |
Employer social security cost related to stock options |
|
(494) |
|
1,101 |
|
4,172 |
Total benefits for key management personnel |
|
47,679 |
|
37,855 |
|
34,337 |
Numbers of stock options granted in the year |
|
|
|
|
|
|
Senior Management as a group |
|
132,100 |
|
117,600 |
|
101,446 |
Numbers of restricted stock units granted in the year |
|
|
|
|
|
|
Senior Management as a group |
|
30,425 |
|
26,500 |
|
22,888 |
|
|
|
|
|
|
|
Remuneration of non-executive directors |
|
|
|
|
|
|
Board fees and other short-term benefits for non-executive directors |
|
533 |
|
437 |
|
435 |
Cost of stock options granted in the year for non-executive directors |
|
2,280 |
|
3,643 |
|
3,263 |
Cost of restricted stock units granted in the year for non-executive directors |
|
1,034 |
|
1,850 |
|
1,731 |
Total benefits for non-executive board members |
|
3,847 |
|
5,929 |
|
5,429 |
Numbers of stock options granted in the year |
|
|
|
|
|
|
Non-executive directors |
|
12,400 |
|
21,600 |
|
22,950 |
Numbers of restricted stock units granted in the year |
|
|
|
|
|
|
Non-executive directors |
|
2,713 |
|
4,800 |
|
5,100 |
Other
No loans, quasi-loans or other guarantees were given by the Company or any of its subsidiaries to members of the board of directors or the senior management. We have not entered into transactions with the Company’s key management personnel, other than as described above with respect to remuneration arrangements relating to the exercise of their mandates as members of the senior management and the board of directors.