The Monitoring Committees report to the Monitoring Committee Rabobank Group, which is
comprised of the directors of HR Rabobank, the Supervisory Directorate, Control Rabobank
Group and Group Risk Management. The Monitoring Committee Rabobank Group advises the
Supervisory Board.
The internal audit function does not form part of the Monitoring Committee Rabobank Group,
but rather conducts periodic, independent studies into the design, implementation and impact
of the Group Remuneration Policy in all entities of Rabobank Group.
If, in any of the business units or subsidiaries, there is a conflict between the Group Remuneration
Policy and local legislation and regulations or local marketing and practices, departures from
the Group Remuneration Policy may be permitted by the Rabobank Nederland Supervisory
Board. In such an event, it is important to ensure that any risk associated with such exceptions is
sufficiently mitigated, that the basic principles set out in the Vision on Remuneration and the
Group Remuneration Policy are not undermined, and that no applicable laws and regulations
are violated.
Developments
Rabobank closely monitors any changes relating to the remuneration policy, both within the
financial sector and beyond. The bank supports the current Dutch trend of reducing the use of
variable pay as much as possible, while at the same time pointing out that, in order to ensure
professional customer services, a limited number of exceptions must remain available in orderto
be able to attract or retain the calibre of employees required. In implementing its remuneration
policy, Rabobank considers the long-term interests of its customers, along with the stability of
the bank itself. In view of its competitive position in the labour market, the bank must pay
competitive salaries, both in the Netherlands and internationally.
There is a risk that Dutch banks will be insufficiently able to attract and/or retain a specific type
of highly qualified and talented financial specialists, namely a select number of experts who
move smoothly between countries and industries. Rabobank applies a different remuneration
ratio for these specialists, based on the straightforward requirement that an adequate monitoring
system is in place both internally and externally, particularly in regard to - in exceptional cases -
higher variable remuneration.
Executive Board
The remuneration packages of the members of the Executive Board are divided into fixed pay,
pension entitlements, and a management supplement that serves as a fixed reimbursement of
expenses. The members of the Executive Board ceased to be eligible for variable pay in 2013.
This element has been eliminated from the policy without compensating for it with an amount
in fixed pay. In eliminating variable remuneration, Rabobank has demonstrated itself to be
sensitive to public criticism of this type of pay.The senior management supplement was
previously eliminated for the Executive Board at the end of 2012. Board members were
compensated for the elimination of this supplement on a one-time basis in 2012, i.e. this has
not resulted in a permanent increase in their fixed pay.The Executive Board does not receive
any long-term incentives or similar benefits. As with other employees, salary scales have been
set for the Executive Board including minimum and maximum amounts. These are as follows.
in euros
Minimum
Maximum
Chairman of the Executive Board
923,500
1,154,400
Members of the Executive Board
707,200
884,000
Employees
