The Group Remuneration Policy applies to Rabobank Group as a whole. The boards of the
subsidiaries (DLL, Rabo Real Estate Group, Obvion) are responsible for adopting and implementing
a remuneration policy in line with the Vision on Remuneration and the Group Remuneration
Policy. The remuneration policies for local Rabobanks are set by the Rabobank Nederland
Executive Board. The Supervisory Boards of local Rabobanks monitor compliance with the
remuneration policy within the local Rabobanks and are responsible for the remuneration of
management within the policy set by Rabobank Nederland.
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,
and discourages employees from taking non-desirable risks. At the same time, it allows Rabobank
to attract and retain highly qualified people in all markets, while encouraging employees to aim
for long-term results that serve the long-term interests of Rabobank Group and its customers.
Variable remuneration
Remuneration in the financial sector has been a subject of general public debate for several
years, both in the Netherlands and abroad.The 'bonus culture'at banks, real estate businesses
and insurers attracted particularly strong criticism, owing to various reprehensible affairs.
Rabobank takes these views seriously and, partly for that reason, has discontinued variable
remuneration for the large majority of its banking employees. Eliminating variable remuneration
outright for all employees represents a dilemma for us. Our competitive position in the labour
market means that we have to offer remuneration at market rates in order to attract and retain
the right employees. This applies both in the Netherlands and abroad. Variable remuneration is
often a standard element of the remuneration package in other countries, and for specialist
positions in the Netherlands, With a view to providing professional customer services, we are
therefore compelled to continue to offer variable remuneration for certain groups of employees,
primarily within the Wholesale, Rural Retail domain, DLL and Rabo Real Estate Group.
The Group Remuneration Policy provides for measures designed to reduce the risks potentially
associated with variable remuneration, such as an excessive focus on short-term profits and
insufficient regard for long-term risks.
Certain groups of employees, primarily within the Wholesale, Rural Retail domain, DLL and
Rabo Real Estate Group, continue to be eligible for variable remuneration. The following risk-
mitigating measures apply to them.
Deferred variable remuneration
A deferral policy applies to variable remuneration. This means that a portion of the variable
remuneration (insofar as it exceeds a threshold amount), is paid on a deferred basis.The deferred
payment covers a sufficient period of time, of at least three years, enabling the ex-post test to
be performed.
Ex-ante test
The Executive Board verifies annually whether payment of the proposed variable remuneration
is responsible, based on Rabobank Group's qualifying capital and solvency ratio. This 'ex-ante'
test therefore centres on the question whether Rabobank is able to make the payments
without experiencing financial problems as a result. The test is required to be approved by
the Supervisory Board.
113 Remuneration
