Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
The chart below shows the development of the total senior
management remuneration package, including pension (policy
levels), over the past five years. The index for 2015 is 96 for
the lower position scales and 90 for the higher ones. In other
words, the overall remuneration package has fallen by 4% to
10% in a period of five years, while the consumer price index
increased by almost 7% in that same period.The sharp fall in
incomes from the higher senior management scales in 2012 is
connected to the one-off elimination of variable pay.
Overall remuneration package for executives
2011 =100
140
120
60
40
20
0
I1111
2011 2012 2013 2014 2015
Lower EK scales
I Higher EK scales
I Consumer price index
Domestic banking domain: CLA population
The position scales below senior management are within the
scope of the CLA and consist of two position scales for senior
management (SM A and SM B) and the scales 1 to 11
Remuneration components
The remuneration package for position scales 1 to 11 and SM
A and SM B consists of fixed income, the employee benefits
budget, pension and fringe benefits. Employees are also eligible
for an employee discount on mortgages.The CLA population
has not been eligible for variable pay since 2013.
Fixed income
The position scales in the Rabobank CLA are based on the Hay
Group's system for evaluating jobs. The initial and final position
salaries can be found in the Rabobank CLA.
The median remuneration in the Dutch banking sector is
EUR 50,227, which gives a ratio in the Dutch banking sector of
1:19.5 between the median remuneration and the employee
with the highest earnings.The median remuneration increased
by 1% in the Dutch banking sector in 2015 compared to 2014,
while the highest remuneration remained unchanged.
Employee benefits budget
The employee benefits budget allows employees to buy extra
leave, save for extra pension, purchase a bicycle in a tax-efficient
way or pay union fees. The level of the employee benefits
budget varies per position scale and can be found in the
Rabobank CLA.
Pension
The pension scheme in the Rabobank CLA qualifies as
a collective defined contribution scheme.The maximum
income for pension accrual was reduced to EUR 94,600 as
of 1 January 2015. Employees with an income higher than
EUR 94,600 receive a personal budget which can be deposited
into an individual net pension savings product.
Fringe benefits
Employees are eligible for a package of fringe benefits in line
with market standards.
Benchmark
The remuneration for the CLA population is periodically
compared with the general market in the Netherlands in order
to follow developments and maintain a remuneration policy
that attracts and retains the right employees. In doing so, we
aim to take up a position at or just under the median for the
general market.The most recent benchmark was established in
2015, with market comparisons showing a varied picture for the
different position scales.The remuneration for some scales is
around the median level in the general market, while it is higher
than the median for other scales. The remuneration for these
scales, in accordance with policy, has been moving towards the
median since 2012, partly through the applicable baseline.
Performance management
In our view, we can only achieve Rabobank's strategic targets
by properly directing and coaching the employees and giving
them regular feedback. In the performance management (PM)
system, we conduct employee interviews regarding their
contribution to both the client's and the organisation's targets.
The PM interview cycle is based on the dialogue between
manager and employee, which is focused on 'doing the right
things well'. Feedback interviews also support Rabobank's
culture transition, aimed at establishing an open dialogue
with each other. Interviews take place regularly throughout
the year and are intended to motivate employees, ensure that
performance remains up to standards and offer the opportunity
108 Rabobank Annual Report 2015
