11Remuneration
This section describes the Group Remuneration Policy of Rabobank Group.
7 7.7 General principles for remuneration
7 7.2 Group Remuneration Policy
Contents Management report Corporate governance Consolidated financial statements Financial statements
Rabobank Group has a meticulous, well-managed and
sustainable remuneration policy which is in keeping with the
strategy, the willingness to take risks, the cooperative objectives
and the core values of Rabobank. The remuneration policy is
customer-orientated and takes into consideration the long-term
interests of the bank, the international context of the markets in
which Rabobank Group is active and also the general interest.
This Group Remuneration Policy has been drawn up based on
the bank's cooperative identity.
As a cooperative bank, Rabobank is sailing its own - relatively
moderate - course when it comes to defining pay levels.
Our aim is to pay no more than the median level within the
relevant market for established businesses and jobs, based on
total reward. In general, variable pay within Rabobank makes
up a relatively small proportion of total reward and is no longer
existent for the majority of functions in the organisation.
Nevertheless, Rabobank must be able to attract, retain, and
motivate the right people with the right capabilities at the right
time, leading to a (slightly) different choice of pay mix in some
environments and markets.
The key principles that are core to our remuneration policy
have been included in ourVision on Remuneration. This vision
applies across all Rabobank entities, including Rabobank and its
member banks within the Netherlands, affiliates and businesses
within the Netherlands and abroad.
11.2.1 Scope
Building on the Vision on Remuneration, the Group
Remuneration Policy applies to all business lines and subsidiary
organisations of Rabobank Group, in the Netherlands and
abroad.The Group Remuneration Policy underlines our striving
fora meticulous, restrained and sustainable remuneration
policy, and contains at least the minimum requirements
to be satisfied in the area of a risk-mitigated remuneration
policy under applicable national and international laws and
regulations. Every year the Group Remuneration Policy is
evaluated and adjusted.
11.2.2 Governance
The remuneration policy describes the monitoring processes
with regard to remuneration and the responsibility and
competencies of the Supervisory Board of Rabobank, as the
main supervisory body within the organisation.The Supervisory
Board has the ultimate supervisory function with regard to
the design and implementation of the Group Remuneration
Policy and is responsible for its approval after adoption by
the Executive Board. For any material exception of the Group
Remuneration Policy, the approval of the Supervisory Board
is mandatory. The Supervisory Board had 17 meetings in
2015.The decisions ofthe Supervisory Board concerning
remuneration are prepared by the HR Committee, a standing
committee ofthe Supervisory Board. In performing its duties,
the HR Committee is supported by Rabobank Group Monitoring
Committee (MC RG), which operates at group level and in
which the various monitoring functions (HR, Compliance,
Control, Risk Management) are represented.
To secure the proper implementation ofthe Group
Remuneration Policy, including the involvement ofthe
monitoring functions, Monitoring Committees also have been
established at the level of group entities and subsidiaries.
These Monitoring Committees report to the local Supervisory
Boards, and to the MC RG.
11.2.3 Content
The Group Remuneration Policy contains specific provisions
for (1) all employees, (2) staff in monitoring functions and (3)
Identified Staff.
71.2.3.1 Remuneration rules for all employees
The remuneration of all employees are subject to a number of
rules and prohibitions.Thus, for example, guaranteed bonuses
are prohibited and there will be no reward for failure.
368 Rabobank Annual Report 2015