Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
Improving customer satisfaction;
Improving ROIC trend 10%;
Improving performance (Cost reduction);
Optimising balance sheet;
Contributing to successful operation of cooperative
governance;
Ensuring a sound culture and awareness of risk;
Carrying out items on implementation agenda;
Helping to make the Executive Board a strong team;
Improving culture and conduct in line with Rabobank Vision.
The uniform process of PM that applies throughout Rabobank
will be carried out for the last time in 2016. In 2017, the new
GROW! process will be kicked off.
Development of remuneration package
As previously stated, the salary scales for the members of
the Executive Board have not been adjusted for inflation or
otherwise increased since 2008. Variable remuneration for the
Executive Board was discontinued in 2013.
Total remuneration Executive Board
2011 100
110
100
60
2011 2012 2013 2014 2015 2016
V
Executive Board H Consumer Price Index
The chart shows the development of the overall Executive
Board remuneration package, including pension (policy levels),
over the past six years as indices compared to 2011. The index
for 2016 is 67, meaning the overall remuneration package
has fallen by 33% in a period of six years, while the consumer
price index rose by 7% in that same period. The peak in the
graph in 2012 is connected to that year's elimination of the
senior management supplement for the Executive Board;
a non-recurring compensation was provided in return in 2012.
The decrease since 2013 is connected to the discontinuation of
the variable pay for the Executive Board. At present, we see no
reason to adjust the remuneration of the Executive Board.
Domestic banking: Executives
Executives work directly below the Executive Board. There are
five position scales for executives, ranging from Executive Scale
I to Executive Scale V. In 2016, more than 240 employees made
up the executives team; 10% of these employees are expats
working abroad on a Dutch contract. One executive had total
remuneration of more than EUR 1 million.
Remuneration package
The primary remuneration package for executives consists
of fixed pay and pension entitlements. Executives also
receive a management supplement that serves as a fixed
reimbursement of expenses, and they are eligible for a package
of fringe benefits in line with market standards. With the
exception of a small group of specialist positions, executives
have not been eligible for variable remuneration since 2014.
Fixed income
The Executives Scales are based on the Hay Group's system
for evaluating jobs. There are five Executive Scales, each with
a scale minimum and maximum and covering a broad salary
range (including holiday allowance and 'thirteenth month'), as
shown in the table below.
Pension
The Rabobank pension scheme applies to the executives.
The Rabobank pension scheme qualifies as a collective defined
contribution plan. The maximum income for pension accrual
was EUR 96,000 as of 1 January 2016. The 'senior management
allowance' was discontinued 1 January 2015. Executives at this
level have since received an individual pension contribution
according to the level of their position.
Fringe benefits
Executives are eligible for a package of fringe benefits, such as
a car lease arrangement, in line with market standards.
Management supplement
Executives are eligible for a fixed expense allowance to cover
costs relating to the performance of their duties. These costs
cannot be claimed separately as the underlying principle is
that the allowance is based on customary practice for similar
positions in the market.
Executive Scales
in euros
Minimum
Maximum
Senior management
153,700
476,900
110 Rabobank Annual Report 2016
