Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
Certificates per member of the Executive Board
Several members of the Executive Board have invested in
Rabobank Certificates personally and/or via their own pension
B.V. (private limited liability company). At year-end 2015, the
number of certificates totalled 12,166.
Number of certificates per member of the Executive Board
A. Bruggink 12,166
Benchmark
The remuneration ofthe Executive Board members was
compared with two external reference markets - one financial
and one non-financial - by an external agency (Hay Group)
in 2014. 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 and includes the 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.The non-
financial group of cross-industry companies in the Netherlands
was determined by selecting companies that are comparable
in terms of their size and complexity and includes the following
companies: ABN AMRO, AEGON, Ahold, Akzo Nobel, DSM,
FrieslandCampina, Heineken, ING Bank, ING Verzekeringen, KPN,
Philips, Randstad, SHV Holding and TNT Express.
The aggregate remuneration of all the members ofthe
Executive Board was within the bottom 25% of both reference
groups, and was therefore well below the median ofthe
reference market.The Executive Board is not eligible for short-
term or long-term variable remuneration, although these
are elements of remuneration that are customarily offered in
the rest ofthe market. The current scale maximums for the
Executive Board were set on the basis of a representative peer
group in 2008 and have not been changed since that time.
The Supervisory Board saw no reason in the results ofthe
benchmarking in 2014 to adjust the levels of remuneration of
the Executive Board. As a cooperative bank, Rabobank feels
comfortable with the current remuneration ofthe Executive
Board and will continue to consider developments in the
market in future decisions concerning levels of remuneration.
Performance management
The members ofthe Executive Board are all designated as
Identified Staff. Accordingly, the performance targets ofthe
Executive Board comply with the distribution prescribed for
Identified Staff between group targets, business unit targets
and individual targets. At least 50% ofthe performance targets
consist of non-financial targets. In 2015, all members ofthe
Executive Board were subject to joint targets in the following
areas:
customer satisfaction and reputation (NPS, CES),
overall financial performance (ROIC, CET1),
strategy,
control and compliance,
employee satisfaction and motivation (employee satisfaction
survey),
management development and diversity,
culture change (culture survey),
collaboration,
sustainability, and
risk management and risk awareness.
Development of remuneration package
As previously stated, the salary scales for the members of
the Executive Board have not been adjusted for inflation or
increased in any other way since 2008. Furthermore, the variable
pay for the Executive Board was eliminated in 2013, while the
rest ofthe remuneration package remained unchanged.
The chart below shows the development ofthe overall
Executive Board remuneration package, including pension
(policy levels), over the past five years as indices compared
to 2011 .The index for 2015 is 67, meaning the overall
remuneration package has fallen by 33% in a period of five
years, while the consumer price index rose by almost 7% in
that same period. The peak in the graph in 2012 is connected
to the elimination ofthe senior management supplement for
the Executive Board in that year; a non-recurring compensation
Overall remuneration package for the Executive Board
2011100
140
120
100
80
60
40
20
0
11
2011 2012
I Executive Board
I Consumer price index
2013 2014 2015
106 Rabobank Annual Report 2015
