Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
to the position (scale) and the performance of the employee.
The maximum achievable percentage of variable remuneration
in general equals the position level. For the Wholesale domain,
the variable remuneration is based on a bonus pool.The bonus
budget per pool is determined by the performance of
Rabobank Group, Wholesale, Rural Retail and the respective
business.These performances are measured based on financial
and non-financial factors. Employees receive a bonus from
this pool based on their individual performance, which is
determined by a mix of qualitative and quantitative goals.
In 2015, a project was started to further structure the variable
remuneration within Wholesale, bringing it more in line with
the method that already applies within Rural Retail.
Fringe benefits international
The package of fringe benefits strongly varies per country.
The primary remuneration policy (fixed income and variable
remuneration) is determined centrally in terms of its structure.
The package of fringe benefits is primarily determined locally.
This has to do with difference in local laws and regulations and
market practice.
Benchmark
Benchmarking in principle takes place per country and
is based on a comparison with peers in the relevant
remuneration market(s). Rabobank uses a central framework
for benchmarking within the Wholesale, Rural Retail domain.
This framework provides a guideline for choosing the market
position, the way in which the peer group is selected and the
remuneration elements that are provided. It also determines the
way in which positions are linked to positions in the benchmark
study, in order to ensure that positions with Rabobank are
correctly compared with the positions in the external market.
Performance management
Since 2015, Rabobank uses one system and process for
performance management for the entire banking business.
We also use one IT system for the support thereof. Therefore,
the performance management requirements for Domestic
Banking also apply for Wholesale, Rural Retail.
Development of remuneration package
Within Wholesale, a project was started in 2015 to enrich
remuneration and structure it more from a system perspective.
This was already accomplished in the Rural Retail domain
in 2012.The basis within Wholesale was set up by the
introduction of a job evaluation framework in 2015, whereby all
positions worldwide are evaluated and classified in one of the
position scales 1-11, SKA or SK B, based on the so-called Hay
Group method.
These position scales will form the basis for local remuneration
structures per country: salary scales with a minimum and
a maximum per position scale and a variable remuneration
structure that is linked to these position scales. The height of
the remuneration within these structures is determined by the
remuneration in the relevant market and the position Rabobank
and the respective unit would like to take in the market with
regard to remuneration. For 2015, as part of the first phase of
the project remuneration structures were developed based
on the aforementioned principles for three units. In 2016, this
project will be further rolled out within the Wholesale domain.
Hereby the experiences from the 2015 remuneration round will
be used as important input.
Remuneration policy for other group entities
DLL
DLL has its own remuneration policy that has been
implemented worldwide. DLL has around 5,300 employees
of whom 4,000 work outside of the Netherlands. In 2015, DLL
had one employee with a total remuneration of more than
EUR 1 million.
Remuneration components
In the Netherlands, DLL uses a remuneration package that
consists of fixed and variable remuneration components
and various fringe benefits, including a pension scheme.
The variable remuneration percentages vary from 5% to 20%,
depending on the position level. Outside of the Netherlands,
the remuneration package with regard to the height of the
fixed income, the variable pay and the benefits is based on the
local market of the respective country.
Benchmark
Benchmarking in principle takes place per country and is
based on a comparison with relevant remuneration market(s).
Traditionally, in the Netherlands, the pay is above the median of
the financial services market.That is why we strive to moderate
the relatively good position with regard to the labour market.
Outside of the Netherlands, we strive for a position between the
median and the third quartile.
110 Rabobank Annual Report 2015
