Criteria and methods to evaluate the performance of Galapagos NV’s CEO and other executive committee members in connection with their performance-based remuneration
For 2019, the performance criteria include elements of research progress (number of targets identified and pre-clinical candidates nominated), clinical trial progression (target number of clinical trials initiated and completed), cash position (actual cash burn versus guidance), corporate development (achievement of business development transaction, organizational growth and quality goals) and commercial development (filgotinib commercialization plan). Each of the corporate objectives is clear and measurable so that it is easy to determine whether or not a specific objective has been achieved or not.
The board determined that the corporate objectives for 2019, which were aimed at fostering the company’s long-term performance, had been achieved and on some aspects overachieved. The remuneration for 2019 takes into account the contributions the members of the executive committee made to these achievements. The nomination and remuneration committee and board of directors used their ability to award an exceptional special bonus for the successful closing of the Gilead transaction, with the conviction that the Gilead alliance secured substantial capital and put other conditions in place for independent R&D innovation and value creation in the longer term, in line with shareholder interests.
The total remuneration complies with the adopted remuneration policy which applied at the time the remuneration was granted. The remuneration policy that was in place during the previous financial year can be found in the remuneration report included in our annual report relating to the year ended 31 December 2018.