Audit Rabobank Group periodically verifies independently whether the product approval
process has been designed properly, is in place and is working effectively.
Audit
The Executive Board has audits carried out by Audit Rabobank Group (ARG), which holds an
independent position within the organisation, to ascertain whether internal risk controls
(governance, risk management and control) meet the applicable requirements. Every year, ARG
performs audit procedures, based on an extensive risk assessment and an audit plan based on
this assessment, in order to establish whether the internal control and risk management
systems operate effectively. The director reports directly to the Chairman of the Executive Board
and has a direct reporting line to the Audit Committee of the Supervisory Board and/or its
Chairman. Tripartite talks between the external auditor, the Dutch Central Bank (DNB) and
Rabobank (including ARG) are held at least once a year. The matters that come up for discussion
at these meetings include risk assessments, the audit plan and audit findings. The Annual
Report includes a statement by the Executive Board to the effect that the internal risk
management and control systems are designed such that the financial reporting can be
considered to be reliable.
Remuneration policy
The Dutch Banking Code contains principles for a prudent, restrained and sustainable
remuneration policy that incorporates non-financial performance criteria. The rules governing
remuneration policy focus on the long term and on managing risks entailed by variable
remuneration systems. Rabobank endorses these guiding principles and accordingly pursues a
prudent, restrained and sustainable remuneration policy, which is in line with the organisation's
strategy, chosen risk profile, cooperative identity and core values.The remuneration policy is in
keeping with a customer-oriented approach and takes account of Rabobank's long-term
interests, the international context of the markets in which Rabobank operates, and acceptance
of the remuneration system by society. The pay outcomes are balanced and the performance
criteria do not encourage employees to take irresponsible risks.
Group Remuneration Policy
The prudent and restrained risk policy pursued by Rabobank in 2014 is reflected in the bank's
remuneration policy. The members of the Executive Board do not receive variable remuneration
and variable pay has been discontinued for all employees covered by the Collective Labour
Agreement. Variable remuneration for specialist positions and international positions is being
increasingly restricted. All Rabobank Group entities are obliged to comply with the Group
Remuneration Policy.To find out more about the Group Remuneration Policy, please consult
the chapter on Remuneration elsewhere in this Annual Report.
Severance pay
Rabobank complies with all current legislation and regulations on the level of severance
payments.
Annual Report 2014 Rabobank Group
