Annual Report 2024

Annual Report 2024

Summary of Named Executive Officer Remuneration

Total remuneration Named Executive Officers

The following table sets forth the total value of the remuneration paid to the NEOs for the last three years:

NEO Remuneration – Total

(in $)

 

Base pay1)

 

Base pay in % change vs the prior year1)

 

Sign on bonus

 

Corporate bonus

 

Variable short-term incentive

 

Variable cash
as % of target opportunity

 

Compensation in the form of stock options2)

 

Compensation in the form of RSUs

 

Other benefits3)

 

% fixed
(of total)4)

 

Total

CEO – Tim Van Hauwermeiren

2024

 

757,680

 

15%

 

–

 

–

 

795,563

 

60%

 

3,194,813

 

3,014,500

 

45,230

 

10%

 

7,807,786

2023

 

655,787

 

–%

 

–

 

–

 

590,215

 

60%

 

8,084,6055)

 

2,575,174

 

39,054

 

6%

 

11,944,835

2022

 

638,901

 

10%

 

–

 

–

 

766,682

 

60%

 

4,174,684

 

2,159,689

 

38,342

 

9%

 

7,778,298

COO – Karen Massey6)

2024

 

655,657

 

37%

 

–

 

3,636

 

573,593

 

50%

 

2,018,973

 

2,100,610

 

842,014

 

24%

 

6,194,483

2023

 

481,471

 

N/A

 

338,000 7)

 

2,921

 

467,662

 

50%

 

3,939,093

 

2,296,517

 

127,393

 

8%

 

7,653,057

CFO – Karl Gubitz

2024

 

553,000

 

7%

 

–

 

3,636

 

331,800

 

40%

 

2,018,973

 

2,100,610

 

260,571

 

15%

 

5,268,590

2023

 

516,043

 

6%

 

–

 

3,556

 

260,866

 

40%

 

2,626,062

 

1,287,587

 

62,798

 

12%

 

4,756,913

2022

 

487,600

 

79%

 

–

 

3,745

 

243,800

 

40%

 

2,623,633

 

1,356,048

 

91,203

 

12%

 

4,806,030

COO – Keith Woods8)

2023

 

305,022

 

(48%)

 

–

 

–

 

–

 

–

 

–

 

–

 

46,034

 

100%

 

351,056

2022

 

583,774

 

5%

 

–

 

3,745

 

583,774

 

50%

 

2,601,982

 

1,364,014

 

205,032

 

15%

 

5,342,321

1)

The base pay of the CEO is paid in EUR (for 2024 the base pay exchange rate used in this table is 1.0824 EUR/USD ), the base pay of the COO is paid in CHF (for 2024 the base pay exchange rate used in this table is 1.1363 CHF/USD). The base pay of the CFO is paid in USD. The percentage presenting the change in base pay is calculated using the currency of payment.

2)

Amounts shown represent the expenses with respect to stock options measured using the Black-Scholes model. For a description of the assumptions used in valuing these awards, see “Note 13 Share-Based Payments” to our Consolidated Financial Statements.

3)

Other benefits consists of the lease of a company car, employer-paid medical insurance premiums, pension contributions, social security costs and other allowances. In 2024, employer social security costs were impacted by the increase of share-price at year end against the share-price as of December 31, 2023.

4)

Fixed compensation is considered as base pay and other benefits.

5)

Based on the approved 2024 equity allocation scheme, the total equity target value for Tim Van Hauwermeiren is equal to $5,080,000 and the total equity target value for Karen Massey and Karl Gubitz is equal to $3,040,000 for each. The CEO, COO and CFO received their respective equity grants at target value converted into a number of stock options and RSUs on the Reference Date of the 30-days average share price of $375.68 per share preceding the Reference Date and the Black-Scholes model fair market value of $138.96 per stock option. This results in the number of stock options and RSUs shown above. The amounts shown above represent the actual value received at the grant date of June 28, 2024 at which date the Company’s share price was equal to $445.76. The difference of $70.08 per share is explained by the stock price increase in the intervening period primarily due to approval of VYVGART HYTRULO for CIDP in the U.S. by the FDA. For more information on the CEO equity grant, please refer to “Determination of target value of CEO equity grant” included in “Equity“ above. The fair market value based on the Black-Scholes model for Tim Van Hauwermeiren is $174.78 and the fair market value for the COO and CFO is $158.50. These amounts do not reflect the actual economic value realized by the beneficiary. Amounts shown represent the expenses with respect to the stock options awards granted in 2024 measured using the Black-Scholes model with unobservable assumptions. The assumptions used in the fair valuation differ between Belgian beneficiary versus non-Belgian beneficiary. For a description of the assumptions used in valuing these awards, see “Note 13 Share-Based Payments” to our Consolidated Financial Statements.

6)

Karen Massey joined as COO in March 2023, and consequently no comparison to 2022 is available. Ms. Massey’s remuneration shows the remuneration paid for the period March 13, 2023 through December 31, 2023. Her 2023 variable pay pay-out has been pro-rated to reflect this as well. The increase year over year for 2024 is not representative as it is comparing to a partial work year.

7)

In 2023, the Company paid a sign-on bonus to Karen Massey to allow the Company to make an overall competitive offer of employment and in recognition of lost corporate benefits as a result of early departure at Ms. Massey’s previous employer. Ensuring a competitive offer in this way and securing Ms. Massey as the Company’s new COO was deemed by the Board of Directors to be in the best interest of the Company and its stakeholders.

8)

Keith Woods resigned as COO March 2023 and his employment relationship ended on June 30, 2023 and consequently the remuneration numbers show his remuneration for the period January 1, 2023 through June 30, 2023. No equity award or variable pay was paid to Mr. Woods in the year ended December 31, 2023.

Stock option overview Named Executive Officers

The table below shows (i) the stock options held as of January 1, 2024, (ii) the stock options granted to the NEOs which vested during the year ended December 31, 2024, (iii) the number of stock options scheduled to vest in the years ending December 31, 2025, December 31, 2026 and December 31, 2027 and (iv) the respective exercise price of such stock options. Each stock option was granted pursuant to the Equity Incentive Plan:

NEO Remuneration – Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information regarding the reported financial year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Opening balance

 

During the Year

 

Closing balance

Name of Directors, Position

 

Specification plan

 

Performance Period

 

Award Date

 

Vesting date

 

End of retention period

 

Exercise Period

 

Exercise price of stock option (€)

 

Stock options held at the beginning of the period

 

Stock options awarded

 

Stock options exercised

 

Stock options forfeited

 

Stock options vested

 

Stock options subjected to a service period

 

Stock options awarded and unvested

 

Stock options held at the end of the year

 

Stock options subjected to a retention period

Tim Van Hauwermeiren, CEO

 

Equity incentive plan

 

21/12/2018 – 01/12/2021

 

21/12/2018

 

(1)

 

31/12/2021

 

01/01/2022 – 21/12/2028

 

86.32

 

80,000

 

–

 

–

 

–

 

–

 

–

 

–

 

80,000

 

–

 

 

20/12/2019 – 01/12/2022

 

20/12/2019

 

(1)

 

31/12/2022

 

01/01/2023 – 20/12/2029

 

135.75

 

80,000

 

–

 

–

 

–

 

–

 

–

 

–

 

80,000

 

–

 

 

21/12/2020 – 01/12/2023

 

21/12/2020

 

(1)

 

31/12/2023

 

01/01/2024 – 21/12/2030

 

247.60

 

50,000

 

–

 

–

 

–

 

–

 

–

 

–

 

50,000

 

–

 

 

24/12/2021 – 01/12/2024

 

24/12/2021

 

(1)

 

31/12/2024

 

01/01/2025 – 24/12/2031

 

309.20

 

25,000

 

–

 

–

 

–

 

8,333

 

–

 

–

 

25,000

 

–

 

 

23/12/2022 – 01/12/2025

 

23/12/2022

 

(1)

 

31/12/2025

 

01/01/2026 – 23/12/2032

 

359.60

 

25,000

 

–

 

–

 

–

 

8,334

 

8,333

 

8,333

 

25,000

 

25,000

 

 

03/07/2023 – 01/07/2026

 

03/07/2023

 

(1)

 

31/12/2026

 

01/01/2027 – 03/07/2033

 

355.40

 

30,000

 

–

 

–

 

–

 

14,167

 

15,833

 

15,833

 

30,000

 

30,000

 

 

28/06/2024 – 01/06/2027

 

28/06/2024

 

(1)

 

31/12/2027

 

01/01/2028 – 28/06/2034

 

416.40

 

–

 

18,279

 

–

 

–

 

–

 

18,279

 

18,279

 

18,279

 

18,279

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

290,000

 

18,279

 

–

 

–

 

30,834

 

42,445

 

42,445

 

308,279

 

73,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Karen Massey, COO

 

Equity incentive plan

 

03/07/2023 – 01/07/2026

 

03/07/2023

 

(1)

 

N/A

 

03/07/2024 – 03/07/2033

 

355.40

 

22,500

 

–

 

–

 

–

 

10,625

 

11,875

 

11,875

 

22,500

 

–

 

 

28/06/2024 – 01/06/2027

 

28/06/2024

 

(1)

 

N/A

 

28/06/2025 – 28/06/2034

 

416.40

 

–

 

12,738

 

–

 

–

 

–

 

12,738

 

12,738

 

12,738

 

–

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,500

 

12,738

 

–

 

–

 

10,625

 

24,613

 

24,613

 

35,238

 

–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Karl Gubitz, CFO

 

Equity incentive plan

 

01/07/2021 – 01/07/2024

 

01/07/2021

 

(1)

 

N/A

 

01/07/2022 – 01/07/2031

 

255.10

 

24,000

 

–

 

–

 

–

 

4,667

 

–

 

–

 

24,000

 

–

 

 

01/07/2022 – 01/07/2025

 

01/07/2022

 

(1)

 

N/A

 

01/07/2023 – 01/07/2032

 

357.50

 

16,000

 

–

 

–

 

–

 

5,333

 

3,111

 

3,111

 

16,000

 

–

 

 

03/07/2023 – 01/07/2026

 

03/07/2023

 

(1)

 

N/A

 

03/07/2024 – 03/07/2033

 

355.40

 

15,000

 

–

 

–

 

–

 

7,083

 

7,917

 

7,917

 

15,000

 

–

 

 

28/06/2024 – 01/06/2027

 

28/06/2024

 

(1)

 

N/A

 

28/06/2025 – 28/06/2034

 

416.40

 

–

 

12,738

 

–

 

–

 

–

 

12,738

 

12,738

 

12,738

 

–

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

55,000

 

12,738

 

–

 

–

 

17,083

 

23,766

 

23,766

 

67,738

 

–

1)

1/3rd of the stock options vests on the first anniversary of the date of grant and the remaining 2/3rd vest in equal installments (24 in total) over the next two years, each time upon the 1st day of each next month.

RSU overview Named Executive Officers

The table below shows (i) the RSUs held as of January 1, 2024, (ii) the RSUs granted to the NEOs which vested during the year ended December 31, 2024 and (iii) the number of RSUs scheduled to vest in the years ending December 31, 2025, December 31, 2026, December 31, 2027 and December 31, 2028. Each RSU was granted pursuant to the Equity Incentive Plan:

NEO Remuneration – Restricted Stock Units (RSUs)

 

 

 

 

 

 

 

 

 

 

Information regarding the reported financial year

 

 

 

 

 

 

 

 

 

 

Opening balance

 

During the Year

 

Closing balance

Name of Directors, Position

 

Vesting period

 

Award Date

 

Vesting date

 

End of retention period

 

RSUs held at the beginning of the year

 

RSUs awarded

 

RSU Forfeited

 

RSUs vested

 

RSUs subject to a service condition

 

RSUs awarded and unvested

 

RSUs held at the closing of the year

 

RSUs subject to a retention period

Tim van Hauwermeiren, CEO

 

24/12/2021 – 24/12/2025

 

24/12/2021

 

(1)

 

N/A

 

2,850

 

–

 

–

 

1,425

 

–

 

1,425

 

1,425

 

–

 

23/12/2022 – 23/12/2026

 

23/12/2022

 

(1)

 

N/A

 

4,275

 

–

 

–

 

1,425

 

–

 

2,850

 

2,850

 

–

 

03/07/2023 – 03/07/2027

 

03/07/2023

 

(1)

 

N/A

 

6,700

 

–

 

–

 

1,675

 

–

 

5,025

 

5,025

 

–

 

28/06/2024 – 28/06/2028

 

28/06/2024

 

(1)

 

N/A

 

–

 

6,762

 

–

 

 

 

–

 

6,762

 

6,762

 

–

Total

 

 

 

 

 

 

 

 

 

13,825

 

6,762

 

–

 

4,525

 

–

 

16,062

 

16,062

 

–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Karen Massey, COO

 

03/07/2023 – 03/07/2027

 

03/07/2023

 

(1)

 

N/A

 

5,025

 

–

 

–

 

1,256

 

–

 

3,769

 

3,769

 

–

 

28/06/2024 – 28/06/2028

 

28/06/2024

 

(1)

 

N/A

 

–

 

4,712

 

–

 

–

 

–

 

4,712

 

4,712

 

–

Total

 

 

 

 

 

 

 

 

 

5,025

 

4,712

 

–

 

1,256

 

–

 

8,481

 

8,481

 

–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Karl Gubitz, CFO

 

01/07/2021 – 01/07/2025

 

01/07/2021

 

(1)

 

N/A

 

2,700

 

–

 

–

 

1,350

 

–

 

1,350

 

1,350

 

–

 

01/07/2022 – 01/07/2026

 

01/07/2022

 

(1)

 

N/A

 

2,700

 

–

 

–

 

900

 

–

 

1,800

 

1,800

 

–

 

03/07/2023 – 03/07/2027

 

03/07/2023

 

(1)

 

N/A

 

3,350

 

–

 

–

 

837

 

–

 

2,513

 

2,513

 

–

 

28/06/2024 – 28/06/2028

 

28/06/2024

 

(1)

 

N/A

 

–

 

4,712

 

–

 

–

 

–

 

4,712

 

4,712

 

–

Total

 

 

 

 

 

 

 

 

 

8,750

 

4,712

 

–

 

3,087

 

–

 

10,375

 

10,375

 

–

1)

RSUs vest over a period of four years with 1/4th of the total grant vesting at each anniversary of the date of grant.