Vision on Remuneration
The basic principles of the remuneration policy are set out in the Vision on Remuneration
document.The policy is designed to promote fair and consistent employee compensation,
based on an effective job evaluation system where possible. Variable remuneration was
discontinued for many employees in 2013 and has been curtailed for those employees who
remain eligible. Guaranteed variable remuneration is not permitted, and the allocation of a
'welcome bonus' is authorised only when new employees are hired and then only during the
first year of employment, in order to compensate for the discontinuation of the (deferred)
variable remuneration they received from their previous employer. The full cycle of risk
alignment is implemented in this process.
The annual performance appraisal and remuneration cycle - which includes setting and
measuring performance and competency goals - is designed to select the appropriate
objectives that both put customer interests first and help ensure Rabobank's long-term
continuity and financial strength.
Rabobank maintains its own, relatively moderate position when it comes to setting employee
compensation. Nevertheless, Rabobank must retain the capabilities and resources to attract,
retain and motivate the right people with the right skills at the right time, and the specific
remuneration strategies of individual group entities can help define this process more clearly.
Pay levels are regularly tested through an external benchmark. The main criterion of these
studies is that, as a rule, payment should not exceed the median of the relevant market for
existing activities and roles, based on total reward.
Group Remuneration Policy
The principles and guidelines of the Vision on Remuneration are detailed in the Group
Remuneration Policy.This sets out the requirements under external legislation and regulations,
including the Dutch Banking Code, the Regulations on Restrained Remuneration Policy
(Financial Supervision Act) 2011, the CEBS Guidelines on Remuneration Policies and Practices
and the Capital Requirements Directives (CRD III and IV).
The Group Remuneration Policy applies to Rabobank Group as a whole. The management of
the individual entities of Rabobank Group is responsible for adopting and implementing a
remuneration policy in line with the Vision on Remuneration and the Group Remuneration
Policy. The Supervisory Boards subsequently approve the policy and monitor compliance.
The remuneration policies for local Rabobanks are set by the Rabobank Nederland Executive Board.
The Group Remuneration Policy is in line with our business strategy, our core values, and the
desired risk profile of Rabobank Group. It supports solid and effective risk management processes,
discourages employees from taking non-desirable risks and ensures that the company
maintains a strong financial position. At the same time, it allows Rabobank to attract and retain
highly qualified people in all markets, as well as encouraging employees to aim for long-term
results that serve the long-term interests of Rabobank Group and its customers. The Group
Remuneration Policy complies with requirements under the applicable legislation and regulations.
Key components of the Group Remuneration Policy represent requirements for employees that
could potentially have a significant impact on the bank's risk profile (Identified Staff) and on
employees in monitoring positions. Identified Staff who receive variable remuneration are subject
to a deferral-of-payment policy, whereby the deferred payment covers a sufficient period of
time (a minimum of three years) and the variable remuneration can be withdrawn and/or
reclaimed by the Executive Board in accordance with the applicable legislation and regulations.
Employees
