Our challenge is to convert sustainability into viable product structures and ideas right across the organi- sation, which add to communities and benefit us and the economy in general s COVER STORY THE BANK'S ROLE TOWARDS SOCIETY Sipko Schat Sipko Schat: Political debate 12 ISSUE 23 MAY 2010 RI WORLD Since the collapse of the housing market in the United States in 2007, which triggered a global write-down on the value of securities iinked to house prices, the role banks play within society has hardly been off the front pages. Although Rabobank emerged from the crisis without serious damage, being a member of the financial sector means having to deal with the fall out, Sipko Schat says. "Being part of the industry, you can't simply sit on an island and say that the rest of the world's wrong and that you're right, no matter how well you've done. Having said that, I do feel that banks are used as scapegoats for many topics - sometimes correctly, although often incorrectly. What's clear is that there were flaws in the system, and this means that the financial sector, as an industry, will now be held accountable far more than it was in the past - whether that's in relation to the business model it uses, the remuneration packages it offers or the help it provides to companies that are struggling." S 7.7. that we'll end up on the high side of the pay scale. What we have done is alter our remuneration process, making it more transparent and putting greater emphasis on deferral payments based on performance and future results." Arjo Blok, who heads up Global Financial Markets at Rl, is phlegmatic about the controversy surrounding bankers' pay, noting that much of the debate appears to have taken place through newspaper headlines. 'There's not been a great deal of discussion about the details," he says. "Although I feel that Rabobank has a fair and transparent compensation model, I recognise some of the challenges the industry faces. We need to find 'the new normal', The role of banks will be further discussed in the public domain for quite some time, Sipko Schat believes. Topics, such as remuneration levels, remain high on everybody's agenda. Nevertheless, "we've always paid our staff fairly, although not extravagantly. However, if you employ staff in the major financial centres - such as Tokyo, New York or London - your compensation scheme has to be similar to those offered among your peer group. We're fully aware of market trends, and we'll continue to follow those trends, although this doesn't mean and this will probably be a combination of both market circumstances and local circumstances. I think both the compensation model and the evaluation methods used need to be measured over a longer period than is currently set, for example over the normal run of business cycles, which will create a more sustainable structure." Rabobank has long focused on the need for sustainability, both

Rabobank Bronnenarchief

blad 'RI World' (EN) | 2010 | | pagina 12