Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
was provided in return in 2012.The decrease since 2013 is
connected to the discontinuation of the variable pay for the
Executive Board.
Domestic banking domain: Executives
Executive-level employees, also known as senior
management (SM), work directly below the Executive Board.
Senior management comprises five position scales, ranging
from SM-I to SM-V. In 2015, more than 200 employees were part
of the senior management team.
Remuneration package
The primary remuneration package for executive-level
employees consists of fixed pay and pension entitlements.
Executives also receive a management supplement that serves
as a fixed reimbursement of expenses, and they are eligible
for a package of fringe benefits in line with market standards.
With the exception of a small group of specialist positions,
executives have not been eligible for variable remuneration
since 2014. Two executives had total remuneration of more than
EUR 1 million.
Fixed income
The senior management position scales are based on the Hay
Group's system for evaluating jobs. There are five position scales
for SM, covering a broad salary range, which includes both
holiday allowance and 'thirteenth month' bonus, as shown in
the table below.
Senior management position scales
in euros Minimum Maximum
Senior management 153,700 476,900
Pension
The senior management pension scheme qualifies as
a collective defined contribution scheme.The maximum
income for pension accrual was reduced to EUR 94,600 as of
1 January 2015.The senior management allowance was also
discontinued as of 1 January 2015. Executives at this level have
since received an individual pension contribution according
to the level of their position, which can be deposited into
an individual net pension savings product.
Fringe benefits
Members of senior management are eligible for a package of
fringe benefits in line with market standards.
Management supplement
Executives are eligible for reimbursement of expenses to cover
costs relating to the performance of their duties. These costs
cannot be claimed separately as the underlying principle is
that the allowance is based on customary practice for similar
positions in the market.
Benchmark
The maximum salaries for senior management were determined
based on a representative peer group in 2008, which was last
compared by an external in 2014. The comparison was based
on the level of difficulty of the position relative to the Dutch
market in general and the Dutch financial sector in particular.
The outcomes from the market comparisons show that the
total remuneration for all senior management scales is well
below the median forthe Dutch market in general.The senior
management scales are also well below the median compared
to the Dutch financial sector, as neither short nor long-term
variable remuneration - typical remuneration components
in the rest of the market - are included in the package.
The comparison with the external market did not show any
reason to adjust the senior management remuneration level.
As a cooperative bank, Rabobank is comfortable with the senior
management's current positions.
Performance management
For executives classified as Identified Staff, the performance
targets comply with the distribution prescribed for Identified
Staff between group, business unit and individual targets.
Executives are also assessed on three to six result targets and
three to six competence targets, including mandatory targets
pertaining to customer focus and collaboration. Individual
salary increases are determined based on the assessment of
these targets.
Development of remuneration package
The salaries for the senior management have not been adjusted
for inflation or increased in any other way since 2008. However,
a shift in remuneration took place as of 1 January 2014, when
the variable pay for senior management was cancelled and
an agreement was reached to increase the final position salaries
by 13%. These modifications combined amounted to a watering
down of the remuneration package.
107 Remuneration
