38 Other net operating income
39 Staff costs
Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Gains/ (losses) on other financial liabilities designated at fair
value through profit or loss and derivatives used to hedge the
interest rate risk of those financial liabilities mainly relates to
fair value changes of the structured notes portfolio attributable
to changes in i) market interest rates and ii) day-one gains that
are directly recognised in profit or loss for an amount of 263.
The results related to fair value changes of the structured notes
due to changes in market interest rates are largely offset by the
fair value changes of the derivatives used to hedge this interest
rate risk. In 2015, a gain of 367 is included in 'Gains/ (losses)
on other financial liabilities designated at fair value through
profit or loss and derivatives used to hedge the interest rate
risk of other financial liabilities designated at fair value'as the
change in the fair value of the financial liabilities designated
at fair value, that is attributable to changes in the credit risk of
Rabobank itself.
in millions of euros
2016
2015
Project income real estate activities
1,653
1,495
Project expenses and impairments real estate activities
(1,319)
(1,213)
Net income real estate activitites
334
282
Operational lease income
1,371
1,373
Depreciation and impairments operational lease
(980)
(1,011)
Net income from operational lease activities
391
362
Rental income from investment property
10
50
Depreciation and impairments investment property
6
(43)
Net income from investment property
16
7
Result on sale of group companies
242
15
Other
421
215
Other net operating income
1,404
881
DLL sold the car leasing business Athlon to Mercedes-Benz
financial services. Rabobank recognised a gain on the sale
of 251.
in millions of euros
2016
2015
Wages and salaries
3,101
3,194
Social security contributions and insurance costs
355
394
Pension costs - defined contribution plans
489
500
Pension costs - defined benefit pension plans
3
9
Release of other post-employment provisions
(76)
(65)
Other staff costs
649
754
Staff costs
4,521
4,786
Expressed in FTEs, the number of internal and external
employees in Rabobank was 45,567 (2015: 52,013).
In 2011, following the implementation of CRD III and the
regulations governing restrained remuneration policy,
Rabobank Group adopted an amended remuneration policy:
the Group Remuneration Policy.This policy is updated on
a regular basis and has, as of 1 January 2015, been adjusted to
include the provisions under the Dutch Act on Remuneration
Policies for Financial Companies. Insofar as employees in
the Netherlands are still eligible for variable remuneration,
it never amounts to more than (on average over group
employees) 20% of the fixed income. Outside the Netherlands,
any variable remuneration never amounts to more than 100%
of the fixed income. Insofar as identified staff (employees who
can have a material influence on the risk profile of Rabobank
Group) are eligible for variable remuneration, it is awarded for
such a period that the risks associated with the underlying
business activities are adequately taken into account. Payment
of a significant portion of variable remuneration is therefore
deferred. The immediate portion of variable remuneration is
unconditional, whereas the deferred portion is conditional.
The deferred portion vests after three years if the conditions are
met. Among other things, it is assessed whether there has been
a significant reduction in financial performance or a significant
change in risk management at Rabobank Group and/or
business unit that puts the circumstances assessed when the
relevant variable remuneration was awarded in a different
perspective. In principle, the right to any provisionally allocated
remuneration lapses when the staff member's employment ends.
50% of both the direct and the deferred portion of the variable
remuneration is allocated in cash. The cash component of the
direct portion is immediately awarded following allocation.
The cash component of the deferred portion is awarded to
employees only after vesting (after a period of three years).
50% of the direct and the deferred portion of the variable
remuneration is allocated in the form of an instrument
(instrument component) i.e. the Deferred Remuneration
Note (DRN).The value of a DRN is linked directly to the price
In millions of euros
2016
2015
Gains/ (losses) on interest rate instruments
166
639
Gains/ (losses) on equity instruments
28
(99)
Gains/ (losses) on foreign currency
359
64
Other
(6)
(1)
Gains/ (losses) on financial assets and
liabilities at fair value through profit or loss
547
603
The net foreign exchange gains/ (losses) included in line item
Gains/ (losses) on foreign currency amount to 329 (2015: -346).
236 Rabobank Jaarverslag 2016