Argenx shareholders vote down new remuneration policy

The proposal by the biotech group Argenx to adjust the remuneration of its executives and directors did not obtain a sufficient majority at the shareholders’ meeting

Argenx

argued that the principles of the remuneration policy, which date from 2021, needed to be adjusted to take into account the development of the group since then. ‘We have become a global, integrated biotech company with commercial activities worldwide. An update of our remuneration policy is necessary because we have different needs,” it said.

Two major changes were proposed. The first concerned director compensation. Argenx proposed to grant them a package of shares in addition to the cash payment they receive. These would replace the stock options they had received so far, the value of which depended on the future evolution of the Argenx share on the stock exchange.

“That is normal practice in companies listed on the American technology exchange Nasdaq,” says Argenx. “And we also have significant operations in the United States and should be able to attract very talented people to our board of directors.”

The second proposed change concerned making the salary package for the chief financial officer and the chief operating officer more attractive, by bringing it more in line with the compensation for the CEO. This mainly concerned the variable remuneration in cash and in shares or stock options and the short- and long-term objectives to which that variable remuneration was linked.

A special majority of 75 percent of the shareholders was required for the approval of the new remuneration policy. However, this was not achieved at the annual shareholders’ meeting of Argenx on Tuesday in Schiphol. This means that the old remuneration policy of 2021 remains in force.

With a total remuneration of 10.75 million euros, Argenx CEO Tim Van Hauwermeiren was the second-highest paid CEO of a Bel20 company in 2023. In addition to a fixed salary of 553,000 euros, he received stock options worth 7.6 million euros.

With 614,000 euros, Peter Verhaeghe, chairman of Argenx, was also the best paid chairman of a Bel20 member last year. And Argenx also had by far the most expensive board of directors: the remuneration for its directors amounted to 3.85 million euros.