Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 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 has 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. 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. 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. The group of 435 Identified Staff positions in 2016 is composed as follows: Table 57: Identified Staff positions. Identified Staff positions Executive Board of Rabobank Group 7 Supervisory Board of Rabobank Group 9 Based on qualitative criteria 317 Based on quantitative criteria 62 Analysis of same remuneration brackets 40 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 include 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 40 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 2016 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 of Identified Staff 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. 366 Rabobank Jaarverslag 2016

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Jaarverslagen Rabobank | 2016 | | pagina 367