Severance payments

Severance payments for departing Galapagos NV Executive Committee members during financial year 2014

In 2014, two members of the Executive Committee have left the Group: Mr. David Smith, effective as of 1 April 2014, and Mr. Guillaume Jetten, effective as of 1 May 2014.

Further to the reasoned recommendation of the Remuneration Committee, the Board of Directors approved a severance package for Mr Jetten upon the termination of his services in an aggregate amount of €574,375. The value of Mr Jetten’s severance package exceeds 12 months’ salary but does not exceed 18 months’ salary. It consisted of the following elements: (i) a payment of an amount equal to 6 months’ salary; (¡i) compensation for loss of post in an amount that Galapagos’ external employment counsel advised the Board was within the normal range; (iii) payment as consideration for Mr Jetten’s contributions to Galapagos; (iv) outstanding warrants to continue to vest and be exercisable as though he were still an employee; and (v) reimbursement for lawyer's fees and tax advice, subject to an agreed cap. The Board of Directors further notes that the severance package is consistent with the approach adopted in the past for departing members of the Executive Committee.