Additionally, under the Dutch Financial Supervision Act Rabobank Nederland has been
designated by the Ministry of Finance as the holder of a collective licence with respect to
business conduct supervision. This means that the Netherlands Authority for the Financial
Markets (AFM) is responsible for supervising the business conduct of local Rabobanks
through Rabobank Nederland.
The cooperative local Rabobanks are also members of the cooperative Rabobank Nederland,
which gives them an important role in ensuring the proper governance of Rabobank Nederland.
A key element in this respect is the open and transparent culture, with clear accountability in
terms of management, supervision, and the assessment of both. The influence and say of the
local Rabobanks is embodied in Rabobank Nederland's two bodies: the Central Delegates
Assembly and the General Meeting.
Executive Board
The Executive Board of Rabobank Nederland is responsible for managing Rabobank Nederland.
This includes responsibility for defining and achieving the targets of Rabobank Nederland, for
determining its strategic policy and associated risk profile, for its financial results, and for the
corporate social responsibility aspects that are relevant to the business. The Executive Board is
also in charge of Rabobank Group's compliance with all relevant laws and regulations, for
managing business risks, and for the financing of Rabobank Group.
In performing its duties, the Executive Board acts in accordance with the interests of
Rabobank Nederland and its affiliated entities, also taking into account the interests of groups
of stakeholders, such as customers and employees. The Executive Board is accountable to
the Supervisory Board, the Central Delegates Assembly and the General Meeting of
Rabobank Nederland.
The Supervisory Board appoints the members of the Executive Board for a four-year term
of service. Re-appointments are also fora term of four years. The Supervisory Board is also
competent to suspend or remove Executive Board members.
Every member of the Executive Board is thoroughly familiar with the financial sector in general
and with banking in particular, with Rabobank's role in society, and with stakeholder interests.
In addition, every Executive Board member has the in-depth knowledge that is required to be
able to lay down and understand the main aspects of Rabobank Nederland's overall policy and
to independently form a balanced opinion of the associated risk exposures. Each year, the
members of the Executive Board take part in a continuing professional education programme
that is specifically tailored to their needs.The Supervisory Board periodically assesses the
performance of the Executive Board, which may in some cases result in appropriate measures
being taken.
On the recommendation of the Supervisory Board, the Central Delegates Assembly defines
the principles underlying the executive compensation policy.The Supervisory Board then
determines the remuneration of the individual members of the Executive Board and is
accountable for its decisions in this regard to the Committee on Confidential Matters of the
Central Delegates Assembly.
117 Corporate governance
