Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
Benchmark
The maximum salaries for executives were determined based
on a representative peer group in 2008, which was last
subject to market comparison by an external party in 2014.
The comparison was based on the level of difficulty of the
position relative to the Dutch market in general and the Dutch
financial sector in particular.
The outcomes from the market comparisons show that the total
remuneration for Executives Scales is well below the median
for the Dutch market in general. The Executive Scales are also
well below the median compared to the Dutch financial sector,
as neither short-term variable remuneration nor long-term
variable remuneration - typical remuneration components in
the rest of the market - are included in the package. As we aim
to set our remuneration on or just shy of the market median
for comparable work, the comparison with the external market
indicated no reason to adjust the level of remuneration for
executives. Rabobank is comfortable with the current salary
positions for executives. In 2016, like the salaries of other
employees of the bank, remuneration for executives remained
unchanged.
Performance management
A uniform PM process is in place for all Rabobank employees,
including executives. The performance targets of executives
who are designated Identified Staff comply with the distribution
prescribed for Identified Staff across group targets, business
unit targets and individual targets. Executives are assessed on
three to six performance targets and three to six competence
targets; the competences 'customer focus' and 'cooperation'
are mandatory for all employees. Individual pay rises are
determined on the basis of having achieved the set targets.
The uniform process of PM that applies throughout Rabobank
will be carried out for the last time in 2016. In 2017, the new
process will be kicked of: GROW!
Development of remuneration package
The salaries for executives have not been adjusted for inflation
or increased in any other way since 2008, and variable pay for
executives was discontinued on 1 January 2014. At the same
time, the scale maximum was raised by 13%. These changes
combined represent a reduction in the remuneration package.
Total remuneration executives
2011 100
110
105
100
75
111111
2011 2012 2013 2014 2015 2016
V
H Lower EK scales Higher EK scales Consumer Price Index
The chart shows the development of the remuneration package
for executives, including pension (policy levels), over the past six
years. The index for 2016 is 96 for the lower position scales and
90 for the higher ones. In other words, the overall remuneration
package has fallen by 4% to 10% in a period of six years, while
the consumer price index increased by 7% in that same period.
The sharp fall in incomes from the higher Executives Scales in
2012 is connected to the elimination of variable pay. At present,
we see no reason to adjust the remuneration of the executives.
Domestic banking domain: CLA population
The position scales below senior management are within the
scope of the CLA and consist of two position scales for senior
staff (Senior Staff A and Senior Staff B) and scales 1 to 11.
Since the CLA 2013-2015, Obvion falls fully within the scope of
the Rabobank CLA, including the remuneration package, so the
following information about the remuneration package also
applies to the subsidiary Obvion.
Remuneration package
The remuneration package for position scales 1 to 11 and
Senior Staff A and Senior Staff B consists of fixed income, the
employee benefit budget, pension and fringe benefits. The CLA
population has not been eligible for variable pay since 2013.
111 Our output and impact: responsible remuneration
