The actual salaries are within these ranges.The scale maximums for the Executive Board were
set in 2008 based on a representative peer group (benchmark) and have not been adjusted
since. In 2013, the remuneration of the Executive Board was again compared by an external firm
(Hay Group) with the external market on the basis of two reference markets, one financial and
one non-financial. It was decided not to use a single combined group, as there are too many
differences in the underlying dynamics within those two groups. Both reference groups include
listed and non-listed companies. The financial, sector-specific reference market was defined within
an international/European context.This reference group consists ofthe following companies:
Crédit Agricole, Banco Santander, Société Générale, Groupe BPCE, UniCredit, ING Bank,
Nordea Bank, Intesa Sanpaolo, BBVA, Commerzbank, Danske Bank, DZ Bank, ABN AMRO and
Caixabank. There are not enough comparable players in financial services in the Netherlands.
The group of'cross industry'companies in the Netherlands was determined by selecting
companies in the Netherlands that are comparable in terms of their size and complexity.
This cross-industry reference group consists ofthe following companies: ABN AMRO, AEGON,
Ahold, Akzo Nobel, DSM, FrieslandCampina, Heineken, ING Bank, ING Verzekeringen, KPN,
Philips, Randstad, SHV Holding and TNT Express. The benchmarking results show that the
aggregate remuneration of all the members ofthe Executive Board is within the bottom 25%
of both reference groups, and is well below the median ofthe reference market. This is due to
the absence of short-term and long-term variable remuneration in the package, which is
customarily offered in the rest ofthe market.
The members ofthe Executive Board participate in the group pension scheme administered
by the Rabobank Pension Fund. The pension scheme was amended and subdued effective
1 January 2013 (for further details, see the section titled 'New Rabobank Collective Labour
Agreement').
Senior management
Senior management salaries have not been adjusted for inflation since 2008. In late 2013, the
company decided to eliminate the variable pay for this group effective 1 January 2014, resulting
in a further retrenchment ofthe terms of employment package for this category. A 40-70%
discount was applied for the Performance Management year 2013 on the variable remuneration
for senior management of Rabobank Nederland. These employees also automatically participate
in the group pension scheme, which was amended and subdued effective 1 January 2013.
New Rabobank Collective Labour Agreement
A new Collective Labour Agreement became effective at Rabobank on 1 July 2013. It has a term
of two years and six months, expiring at the end of 2015. In negotiating the new Collective
Labour Agreement, Rabobank primarily agreed a retrenchment of employment benefits.
For example, it was agreed to apply a 'pay freeze'for the term ofthe Collective Labour Agreement,
which means that the Agreement does not provide for collective wage increases. Furthermore,
annual individual salary adjustments and salary increases for employees receiving promotions
are moderate. A second important provision ofthe Agreement is that variable pay was
eliminated with effect from the evaluation year 2013. A transitional scheme is in place for 2013.
A portion ofthe variable pay was transferred to an 'Employee Benefit Budget', which employees
can spend as they see fit in the BenefitShop, for example to purchase additional leave hours or
earn pension credit. This represents a further step in Rabobank's upgrade to its terms of
employment package.The discontinuation ofthe variable remuneration effective 1 January 2014
was further compensated in part by the 1.5% salary increase.
Another new feature ofthe Collective Labour Agreement is that a Sociaal Plan has been agreed.
In implementing this plan, Rabobank aims to carefully manage the personnel consequences of
Vision 2016. The purpose is to prevent redundancy wherever possible, and for this purpose a stage
of'active mobility' has been agreed for employees in positions where redundancy is expected.
Annual Report 2013 Rabobank Group
