Corporate social responsibility
The Supervisory Board is pleased to note that Rabobank went on in 2010 to further embed
corporate social responsibility in its service offering. The sustainability report and the financial
report have been integrated since the financial year 2009. The Cooperative Affairs Committee
took an advisory role in the reporting period in reviewing several CSR-related issues and
exchanging ideas about these issues with the Executive Board.
Remuneration policy
Rabobank pursues a prudent, restrained and sustainable remuneration policy, which is in
line with Rabobank's strategy, chosen risk profile, cooperative identity and core values.
The remuneration policy is in keeping with a client-oriented approach and takes account of
Rabobank's long-term interests, the international context of the markets in which Rabobank
operates, and acceptance by society. Based on its cooperative identity, Rabobank wrote the
Vision on Remuneration in 2010, which further underpins the prudent application of these
principles by every group entity. In addition, existing regulations and procedures were
tweaked where necessary with a view to establishing a prudent structure of authorities.
The remuneration of the members of the Executive Board is benchmarked every year.
Previous benchmarks, including the one performed in January 2010, proved that their
remuneration is below the median of the peer group. The executive directors'variable pay is
relatively low, both compared to their fixed income and to the market. The variable pay is
based on a series of quantitative, qualitative, individual and collective targets to be achieved
in the long and short term. The Supervisory Board approves the remuneration policy for
senior management and supervises its execution by the Executive Board. Material retention,
exit and welcome packages are not permitted in principle. Any exceptions are subject to
Executive Board approval. The Supervisory Board discusses the highest earners every year via
a group-wide remuneration report.
Rabobank offers no variable pay in the form of option or shareholding rights that are awarded
to executive directors or senior management. This means the members of the Executive Board
of Rabobank receive a modest amount in variable pay. They are entitled to a short-term bonus
of up to 15% of their fixed salary, which is paid out annually, and to a long-term bonus, also of
up to 15%, which does not become payable until after three years. Rabobank's remuneration
structure has never been such that it might encourage employees to take irresponsible risks.
Evaluation of performance and remuneration of members of Executive Board
In 2010, the remuneration of the members and former members of the Executive Board of
Rabobank Nederland amounted to EUR 10.3 million in total.This amount can be broken down
as follows:
In millions of euros 2010 2009
Salaries 6.8 6.6
Pension costs 1.6 1.3
Performance-related pay 1.7 1.8
Other emoluments 0.2 0.2
Total 10.3 9.9
Rabobank's cooperative identity and structure are embedded in its remuneration policy for
the members of the Executive Board. As part of the remuneration policy for the Executive
Board formulated by the Central Delegates Assembly, which is in keeping with the Vision on
Remuneration, the Supervisory Board determined the performance-related payment to each
member of the Executive Board on the basis of the evaluation of their performance in 2009.
After having been reviewed by the Supervisory Board, the full remuneration report 2009 was
discussed with the Confidential Committee of the Central Delegates Assembly, which shared
its comments on the report with the Central Delegates Assembly representing the members
of Rabobank Nederland. The total income of each member of the Executive Board is in line
with the standards formulated in the Dutch Corporate Governance Code, the Banking Code
and the Principles for Controlled Remuneration Policy issued by DNB and AFM.
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Annual Report 2010 Rabobank Group
