Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
to adjust performance where necessary, promoting continuous
employee performance improvement and therefore the bank's
performance.
In PM, client interests come first, and any performance targets
should not include incentives that might lead people to
careless conduct or behaviour that is not in the interests of
the client. Managers and employees work together to agree
on a balanced set of both financial and non-financial targets,
including three to six result targets and three to six competency
targets.The competency targets must include 'client centricity'
and 'collaboration'.
Development of remuneration package
The most recent general salary increase for the salary scales
within the CLA took place in 2011, which means salary scales
have a baseline from 2012. However, in 2013, variable pay was
cancelled, as was the personal budget and non-statutory leave.
These cancellations have been partially offset by a one-off
salary increase of 1.5% from the beginning of 2014 and the
paying out of the employee benefits budget since 2014. All in
all, these changes have slightly watered down the package on
offer. In 2014, the CLA was extended by one year and is now
due to expire at the end of 2016. The extension of the CLA also
means that the baseline continues.The effects on pensions will
also continue to be felt, as shown in the chart below.
The chart below shows the development of the total
remuneration package (policy levels) of three CLA scales over
the past five years as indices compared to 2011. The average
index figure of 2015 calculated over all CLA scales is 104.
This means that the total remuneration package has increased
by 4% in five years - less than the consumer price index which
increased by almost 7% in that same period.
Remuneration in the Wholesale, Rural Retail domain
The majority of the employees in Wholesale, Rural Retail work
outside of the Netherlands. Within this domain, remuneration
is primarily driven by the market practice in the respective
country within the guidelines of the Group Remuneration Policy.
Remuneration components in the Netherlands
The employees under Dutch contract in the Wholesale, Rural
Retail domain fall under the Rabobank CLA. That which is
mentioned above under 'Domestic banking domain: CLA
population'thus also applies for this group. A limited number
of specialised positions also qualify for variable remuneration.
The variable remuneration for this group will never exceed 20%
Overall remuneration package for CLA population
2011 100
140
120
100 -
80
60
40
20
0
111111
2011 2012 2013 2014 2015
H Scale 5
H Scale 9
Scale SKA
I Consumer price index
on average. In addition, a salary exit scheme is possible for the
most specialised positions within Wholesale, Rural Retail in
the Netherlands.
Remuneration components international
The remuneration package in the foreign offices of Rabobank
includes three elements: fixed income, variable remuneration
and fringe benefits. Rabobank strives for a position just below
the median for the total package. In general, this is achieved
in the various countries by letting the fixed income and
fringe benefits come out around the median and the variable
remuneration just below the market average.
Fixed income international
The fixed income differs per country and is based on the
remuneration level in the local labour market.
For Rural Retail the salaries are based on salary scales with
a minimum and a maximum.These salary scales are linked to
the same position scales as in the domestic banking business:
1 to 11 and SK A and SK B. In the Wholesale domain, salaries are
driven by the relevant market level per position. For Wholesale,
a project was started in 2015 to develop a global salary
structure linked to the position scales 1 to 11 and SK A and SK B.
Variable remuneration international
Contrary to the Dutch banking business, the variable
remuneration outside of the Netherlands is still a regular
part of the total remuneration package. For Rural Retail,
a model applies in which the variable remuneration is linked
109 Remuneration
