Responsible remuneration
Our output and impact
As a bank with a cooperative background, Rabobank navigates its own, socially responsible and
comparatively moderate strategy within the bounds of legislation and regulations when determining
remuneration. All Rabobank employees receive a salary and a set of employment conditions which
corresponds with their responsibilities and performance, as well as an inspiring working environment
in which to develop and make the most of themselves and their talents.
We believe that reward is more than just payment. Our background as a cooperative means we offer
positions that allow employees to make a real difference both in the local communities where they
work and internationally by contributing to our goal of providing a solution to the global food issue.
Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Remuneration policy
Rabobank's Vision on Remuneration and Group Remuneration
Policy (GRP) serve as a framework within which several entities
define their own remuneration arrangements. Agreements
on remuneration are captured in the CLA. The Rabobank CLA
applies to most Rabobank employees. A separate remuneration
policy applies to the Executive Board and other executives,
and DLL and Rabo Real Estate Group have each adopted
remuneration policies of their own within the framework.
A separate CLA is in place for most employees of Rabobank
Real Estate Group. Remuneration policies for Wholesale, Rural
Retail (WRR), DLL and Rabo Real Estate Group entities located
outside the Netherlands are partly based on local legislation
and regulations, as well as market conditions.
Rabobank's Vision on remuneration
Rabobank's remuneration policy is designed to promote fair
and consistent employee compensation. (See Vision to review
the basic principles). Our annual performance management
cycle supports Rabobank's business strategy and assesses
employee performance. We use external benchmarking with
the aim to set our remuneration on or just shy of the market
median for comparable work. The risk management framework
and the guiding principle based on legislation of 'rewards for
success, not failure' means guaranteed variable remuneration to
employees is not permitted. Variable remuneration is no longer
offered to most employees. Where Rabobank Group does still
award variable remuneration, it has been capped.
Annual performance management
The annual performance management cycle stimulates putting
customer interests first and promotes the financial strength
and long-term continuity of Rabobank. Setting and assessing
result and competence (behaviour) targets is part of this cycle.
Annual appraisals determine employee remuneration levels,
ensuring a clear link between performance and remuneration.
The uniform process of performance management that applies
throughout Rabobank was carried out for the last time in 2016.
In 2017, a new process will be kicked off.
External benchmarking
We use external benchmarking to compare the level of
remuneration with that of the relevant market. In principle,
we aim to set our remuneration on or just shy of the market
median for comparable work.
Risk management framework
The risk management framework necessitates a deferral
policy for variable remuneration for employees who could
have a material impact on the risk profile. So this group, also
known as Identified Staff, only receives part of the variable
remuneration after a waiting period of at least three years.
This also applies for non-Identified Staff eligible for variable
remuneration above a certain level. The Executive Board
reserves the right to withhold deferred variable remuneration
during the deferral period (malus) and/or reclaim it (claw-back),
in accordance with legislation and regulations.
104 Rabobank Annual Report 2016
