Remuneration
Rabobank wants to be at the cutting edge, both as an employer of choice and from a business
perspective. An inclusive culture that recognises, acknowledges and values employee diversity
is in keeping with this aim. Gender diversity receives specific attention. Rabobank is seeking to
increase the proportion of women in senior management positions by 8.5 percentage points
compared to 2011 by 2014. The proportion of women in such positions rose to a limited
extent, from 12.8% in 2011 to 14% in 2012. Specific attention is given to the proportion of
female participants in the talent development programmes, the interim management
programme and the corporate management traineeship programme.The interim management
programme is a key source of people for management positions at local Rabobanks. In 2012,
39% of the participants in this programme were women. In the top echelons of Rabobank,
there are two female members of the Supervisory Board as well as one woman on the
Executive Board, who retired from the Executive Board in January 2013.
Remuneration is closely connected to being an employer of choice. Rabobank's HR vision
states that remuneration is more than just pay, and that matters such as an inspirational
working environment and the opportunity to take responsibility, develop one's talents and
work for an organisation of which one can be proud are also important.
Group Remuneration Policy
Rabobank is of the opinion that it pursued a prudent, restrained remuneration policy in 2012,
as it did in previous years. As a consequence, its policy did not create any undesirable
incentives that could harm customer interests or damage Rabobank's long-term financial
position. In addition, Rabobank is pursuing its own, relatively moderate policy on setting pay.
Rabobank's remuneration policy is laid down in the Group Remuneration Policy (GRP), which
was introduced in 2011.The GRP elaborates on the principles underlying the remuneration
policy. It was prepared in line with the requirements set by the European Capital Requirements
Directive (CRD III) regarding restrained remuneration in the financial sector. In the Netherlands,
these requirements are enshrined in law in the Restrained Remuneration Policy (Financial
Supervision Act) Decree and the Regulations on Restrained Remuneration Policy (Financial
Supervision Act) 2011
The annual performance appraisal and remuneration cycle, including the defining and
measuring of performance targets, is designed to ensure that the right targets are chosen
to treat customers fairly on the one hand and shore up the robustness of the organisation
and its ability to continue as a going concern in the long term on the other.
The Executive Board and the Supervisory Board monitor whether the awarding and payment
of variable pay is within the parameters of the GRP. Monitoring committees, which have been
established at all group entities and subsidiaries, have an important advisory and assessment
role in this process. The aim is to reduce the risks associated with variable pay where needed
and at the same time avoid any undesirable incentives.
A new remuneration framework was introduced at Rabobank International Rural Retail
Banking in 2012. This new framework provides a clear and consistent job classification system
and remuneration structure (global consistency), while offering individual entities the flexibility
they need to ensure that their pay structure is in line with the local markets where Rabobank
International Retail Banking is active (local flexibility). Global consistency is achieved by
means of a uniform job classification system, pay structure and variable income model.
Local flexibility is expressed primarily in pay levels based on local circumstances and customs.
Rabobank aims to be cost-aware in its terms of employment. The Rabobank collective
bargaining agreement (CBA) expired on 30 June 2012, and in the spring of 2012 the parties
to the CBA started talks on a new agreement. By the end of the spring, they reached the
conclusion that it would be best to suspend the talks. This was partly because the parties
wanted such different things that further negotiation did not seem appropriate. Another
reason was that the fall of the Cabinet and the accord on the 2013 budget created uncertainty
about the future of legislation that was relevant to the CBA. When the parties to the CBA
resumed talks in the autumn of 2012, they discovered that these two issues still proved a
barrier to bringing the talks to a successful conclusion. Talks were resumed in January 2013.
Rabobank attaches great importance to reaching agreement on a CBA with the unions.
The CBA for 2011 -2012 was automatically renewed for one year with effect from 1 July 2012.
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