I think that our
remuneration policy
has neverprovidea
room for taking
irresponsible
COVER STORY THE BANK'S ROLE TOWARDS SOCIETY
4 Piet Moerland:
16 ISSUE 23 MAY 2010 RI WORLD
Q What if these ideas are transformed into legal
structures for banks?
A "I don't foresee that happening, but we will cross
that bridge when we come to it."
Q What is Rabobank's stance on remuneration
policies?
A "I think that our remuneration policy has never pro-
vided room for taking irresponsible risks. The variable
part of the income for Executive Board members is
modest. We have a short-term variable part that
accounts for up to a maximum of 15 percent of the
fixed income and is rewarded on a yearly basis. Addi-
tionally, there is a long-term variable reward of 15 per
cent, which is paid out only after a 3-year cycle. That's
as far as we go with variable income components,
except for a few dedicated Rabobank International and
GFM functions that require highly specialist knowledge.
These people can earn a bonus that amounts to more
than 30 percent of the fixed income. However, we think
this is in line with global remuneration related to these
specialist functions. And as I stated earlier, as a global
international bank with large clients, we need to have
these functions in house in order to properly service
our clients."
Q What is Rabobank's role towards Outch society?
A "Rabobank wants to make an economie, social and
ecological contribution to building a sustainable
society. We have embedded this ambition in our code
of conduct, and in our general internal and external
service provision principles. Corporate social responsi-
bility is the pillar of our core activities, of which lending
comes first. Rabobank is committed to creating more
sustainability in the value chains in which it operates,
and we put a lot of effort into ensuring we are sustain
able in our own operations. As part of our commitment
to society, Rabobank wants to encourage social cohe-
sion within communities and make financial services
accessible to all."
Q What should change?
A "Not a lot, I believe. As I stated earlier, sustainability
is in the genes of the bank and I think that it is
Rabobank's core business driver. However, we can
always do better, and we should be aware of the
changes taking place in the areas in which we're active,
which is why we have a continual dialogue with our
clients, NGOs and governments."
Q And what about the balance between making
profit and serving society as a whole?
A "I think we carefully manage that balance. Each year
Rabobank Netherlands and the Dutch member banks
invest cooperative dividend back into the societies in
which they operate. In this way they try to structurally
support social and sustainable initiatives. And our
international operations also invest in appropriate
sustainable activities abroad. I know that this some-
thing that is highly regarded by the communities in
which we operate, and I believe that's the differentiator
between us and other banks. It is simply the essence
of our cooperative."
