Inhoudsopgave Bestuursverslag Corporate governance
The Executive Board is authorized to reclaim, either in whole or
in part, the variable pay which has already been paid to both
employees and former employees ('claw back'), if:
the payment was made based on incorrect or misleading
information regarding the achievement of performance
targets which formed the basis of the variable pay or
concerning the circumstances on which the variable pay was
made dependent;
it concerns fraudulent actions by the employee in question;
it concerns participation in or responsibility for conduct
that have led to considerable loss and/or damage to the
reputation of Rabobank Group and/or the subsidiary or group
entity; and/or
the employee did not meet applicable standards regarding
ability and correct conduct.
71.2.3.2 Remuneration rules for monitoring functions
The remuneration of employees in a control role, referred
to as monitoring functions (HR, Control, Risk Management,
Compliance, Legal and Internal Audit), is bound by strict
conditions. This ensures their independence with regard to
their monitoring role. For monitoring functions the following
requirements are applicable:
the amount of the fixed pay of employees in a monitoring
function will be sufficient to guarantee that Rabobank Group
can attract qualified and experienced employees;
in the allocation between fixed and variable pay, fixed pay is
preferred and variable pay, if any, is always less than 50% of
fixed pay;
objectives for awarding variable pay are predominantly
function-related. Financial criteria are not based on the
financial results of the entity being monitored by the
employee in the monitoring function;
variable pay is only paid to employees in monitoring
functions when at least 50% of the specific job-related targets
were met, so as to emphasize the appropriate performance of
the functional role.
71.2.3.3 Remuneration rules for Identified Staff
A group of positions is indicated as Identified Staff positions:
employees in these positions may have a material influence on
the risk profile of Rabobank. Within Rabobank Group the main
risks are credit, market and operational risks. Following EBA
guidelines, Rabobank identified material risktakers based on
qualitative and quantitative criteria, including the 0.3% highest
paid employees.
Jaarrekening Rabobank Groep Jaarrekening Rabobank
The group of 406 Identified Staff positions identified in 2015 is
composed as follows:
Executive Board of Rabobank Group 6
Supervisory Board of Rabobank Group 9
Based on qualitative criteria 285
Based on quantitative criteria 71
Analysis of same remuneration brackets 35
The category 'qualitative criteria' include Senior management,
the heads of material Business Units and the staff reporting
directly to them, employees who are responsible for specific
credit risks or product approvals, and traders with authority for
transactions with significant risks.
The category 'quantitative criteria' include the 0.3% highest
paid employees, if they are not already included in the category
'qualitative criteria'. After the initial analysis, employees falling
in the same remuneration brackets as the employees covered
by the qualitative criteria have been scrutinized, leading to the
identification of another 35 Identified Staff positions.
Strict remuneration regulations apply to the group of Identified
Staff. Any variable remuneration awarded to these employees, is
based on the outcome of a mix of performance objectives, with
objectives at group level (20%), business level (minimum 20%)
and individual level (minimum 20%). In 2015 the objectives
at group level related to the ROIC of Rabobank Group and
customer satisfaction Group-wide. In total, no more than 50% of
the objectives have a financial nature.
The distribution between Group, group entity and individual
targets described above, involves a minimum requirement
applicable for each Identified Staff employee who receives
variable remuneration.The final weighting of these targets
per employee depends on the function and activities of the
employee.Therefore, the applicable Monitoring Committee will
monitor the quality and distribution at the individual level in
order to ensure that there is an appropriate balance which does
not induce undesirable incentives.
Due to the different ways in which variable remuneration is
determined within Rabobank Group, the way in which the
Performance Management framework is elaborated may differ
between the subsidiaries and group entities. Also when a bonus
pool approach is used, the required distribution of performance
objectives will also be accounted for.
379 11. Remuneration