Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
Since the variable remuneration for members of the Executive
Board was discontinued in 2013, the number of DRNs granted
to members and former members of the Executive Board was
0 for the performance year 2016 (0). There was a total of 486
DRNs outstanding with members and former members of the
Executive Board at year-end 2016 (2015: 11,647). This total
includes the DRNs awarded to members and former members
of the Executive Board in previous positions.
Loans per member of the Executive Board
The loans, advances and guarantees secured by members of
the Executive Board in office as of 31 December 2016 and the
average interest rates were as follows:
Loans per Executive Board member
in millions of euros
Outstanding
loans
Average interest
rate (in
On 31 December 2016
B.C. Brouwers
0.5
2.6
R.J. Dekker
1.0
2.1
B.J. Marttin
0.4
5.8
H. Nagel
1.0
2.2
J.L. van Nieuwenhuizen
1.2
2.0
Movements in the loans, advances and guarantees provided to
members of the Executive Board in office on 31 December 2016
were as follows:
These transactions have been entered on employee terms and/
or at market rates, which partly depend on the currency as well
as the agreed fixed-interest period and the time at which the
transaction was completed or the commencement of a new
fixed-interest period.
Certificates per member of the Executive Board
The members of the Executive Board do not have personal
investments in Rabobank Certificates and/or via their own
pension B.V. (private limited liability company).
Benchmark
The remuneration of the Executive Board members was
compared with two external reference markets - one financial
and one non-financial - by an external agency (Hay Group)
in 2014. Because the underlying dynamics of these two
markets are extremely different, we decided not to use a single
combined group. Both reference groups include listed and
non-listed companies. The financial, sector-specific reference
market was defined within an international/European context
and includes the following companies: Crédit Agricole, Banco
Santander, Société Générale, Groupe BPCE, UniCredit, ING Bank,
Nordea Bank, Intesa Sanpaolo, BBVA, Commerzbank, Danske
Bank, DZ Bank, ABN AMRO and Caixabank. The non-financial
group of cross-industry companies in the Netherlands was
determined by selecting companies of comparable size and
complexity, which include the following companies: ABN
AMRO, AEGON, Ahold, Akzo Nobel, DSM, FrieslandCampina,
Heineken, ING Bank, ING Verzekeringen, KPN, Philips, Randstad,
SHV Holding and TNT Express.
In 2014 the aggregate remuneration of all the members of
the Executive Board was within the bottom 25% of both
reference groups, and was therefore well below our aim to
set our remuneration on or just shy of the market median for
comparable work. However, in 2016 the Supervisory Board saw
no reason in the results of the benchmarking in 2014 to adjust
the levels of remuneration of the Executive Board. This decision
was based on the fact that the current scale maximums for
the Executive Board have not been changed since they were
set on the basis of a representative peer group in 2008, and
because the Executive Board of Rabobank is since 2013 not
eligible for short- or long-term variable remuneration, even
though these elements of remuneration are customarily offered
in the rest of the market. Rabobank feels comfortable with the
current remuneration of the Executive Board and will continue
to consider developments in the market in future decisions
concerning levels of remuneration. Like the salaries of other
employees of the bank, remuneration for the Executive Board
remained unchanged in 2016.
Performance management
A uniform PM process applies throughout Rabobank; members
of the Executive Board (all designated as Identified Staff) are
also subject to this process. The Executive Board's performance
targets comply with the distribution prescribed for Identified
Staff across group targets, business unit targets and individual
targets. At least 50% of the performance targets consist of non-
financial targets. In 2016, all members of the Executive Board
shared joint targets in the following areas:
Movements in loans, advances and guarantees of members of the
Executive Board
in millions of euros
2016 2015
Loans, advances and guarantees
Outstanding on 1 January
4.3 4.9
Provided during the year
- 1.2
Redeemed during the year
(0.8) (1.8)
Reduction on account of leaving office - -
Increase on account of taking office
0.6 -
Outstanding on 31 December
4.1 4.3
109 Our output and impact: responsible remuneration
