40 Other administrative expenses
4 1 Depreciation
Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
of a Rabobank Certificate (RC) as listed on the NYSE Euronext.
The instrument component is converted into DRNs at the
time of allocation on completion of the performance year.
The number of DRNs is determined on the basis of the closing
rates for Rabobank Certificates, as traded on the NYSE Euronext
during the first five trading days of February of each year.
This therefore represents both the instrument component
of the direct and the deferred portion of the variable
remuneration.The final number of DRNs relating to the deferred
portion is established on vesting (after a period of three years).
The payment of the instrument component is subject to a one
year retention period. After the end of the retention period,
the employee receives, for each DRN (or a portion thereof)
an amount in cash that corresponds with the value of the DRN
at that moment.
Payment of the variable remuneration is measured in
accordance with IAS 19 Employee benefits.The immediate
portion of the variable remuneration is recognised in the
performance year, whereas the deferred portion is recognised in
the years before vesting.
The same system also applies, in broad terms, to non-identified
staff, although no deferral policy applies to the first one
hundred thousand euros and both the immediate and the
deferred portion are paid fully in cash, which means that no
DRNs are awarded.
On 31 December 2016, the costs of equity instrument-based
payments were 13 (2015: 8). On 31 December 2016, a liability
of 30 was recognised (2015: 26) of which 10 (2015:11) was
vested. The costs of variable remuneration paid in cash were
175 (2015:190).The number of DRNs outstanding is presented
in the following table.
in thousands 2016 2015
Opening balance 1,037 1,014
Awarded during the year 531 249
Paid during the year (362) (126)
Changes from previous year 171 (100)
Closing balance 1,377 1,037
The value of a DRN is linked directly to the price of a Rabobank
Certificate. The estimated payments to be made for the variable
remuneration are shown in the following table.
On 31 December 2016 Yearofpayment
in millions of euros 2017 2018 2019 2020 2021 Total
Variable remuneration, excluding DRNs 173.3 6.6 8.4 9.9 - 198.3
DRNs 10.9 10.6 3.8 7.2 8.4 40.9
Total 184.2 17.3 12.2 17.1 8.4 239.2
On 31 December 2015 Year of payment
in millions of euros 2016 2017 2018 2019 2020 Total
Variable remuneration, excluding DRNs 189.7 6.2 7.0 7.0 - 209.9
DRNs 11.7 7.9 4.5 3.9 3.7 31.7
Total 201.4 14.1 11.6 10.8 3.7 241.6
in millions of euros 2016 2015
Additions and releases of provisions 1,063 506
IT expenses and software costs 718 634
Consultants fees 371 322
Training and travelling expenses 168 176
Publicity expenses 160 172
Result on derecognition and impairments on
(in)tangible assets 96 32
Other expenses 1,059 1,074
Other administrative expenses 3,635 2,916
in millions of euros
2016
2015
Depreciation of property and equipment
250
250
Depreciation of intangible assets
188
193
Depreciation
438
443
237
Notes to the consolidated financial statements