This chart shows the development of the total remuneration
package (policy levels) of three CLA scales over the past six
years as indices compared to 2011. The chart shows that the
three CLA scales fall behind, as the consumer price index
increased by 7% in that same period. At present, we see no
reason to adjust the remuneration of the CLA population.
The majority of the employees in Wholesale, Rural Retail work
outside of the Netherlands. Within this domain, remuneration
is primarily driven by the market practice in the respective
country within the guidelines of the GRP. In 2016, one employee
had a total remuneration (including pension contributions) in
excess of EUR 1 million.
The remuneration package in the foreign offices of Rabobank
includes three elements: fixed income, variable remuneration
and fringe benefits. Rabobank strives for a position just below
the median for the total package. In general, this is achieved in
the various countries by arranging the fixed income and fringe
benefits around the median and the variable remuneration just
below the market average.
For Rural Retail, the salaries are based on salary scales with
a minimum and a maximum. These salary scales are linked to
the same position scales as in the domestic banking business:
1to 11 and Senior Staff A and Senior Staff B. A project was started
in 2015 for Wholesale to develop salary structures linked to the
position scales 1 to 11 and Senior Staff A and Senior Staff B.
The new salary structures have been in place in different
regions since the performance year 2015 and were developed
for the other regions in 2016 and will be implemented over
performance year 2016.
113 Our output and impact: responsible remuneration
Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
Development of remuneration package
The most recent general salary increase for the salary scales
within the CLA took place in 2011, which means salary scales
have a baseline from 2012. Variable pay was discontinued in
2013. The new CLA 2017-2020 also means that the current
baseline will remain valid until 2019.
Total remuneration CLA-population
2011 100
110
108
106
104
102
100
98
2011 2012 2013 2014 2015 2016
V
H Scale 5 Scale Senior Staff A
H Scale 9 Consumer Price Index
Remuneration in the Wholesale, Rural Retail domain
Remuneration package in the Netherlands
The employees under Dutch contract in the WRR domain fall
under the Rabobank CLA. What is described under 'Domestic
banking domain: CLA population' thus also applies to this
group. A limited number of specialised positions also qualify
for variable remuneration. The variable remuneration for this
group may never exceed 20% on average. In addition, a salary
extension scheme is possible for the most specialised positions
within WRR in the Netherlands.
International remuneration package
International fixed income
The fixed income differs per country and is based on the
remuneration level in the local labour market.
International variable remuneration
Unlike in the Dutch banking business, variable remuneration
is still a regular part of the total remuneration package outside
of the Netherlands. In Rural Retail, the variable remuneration
is linked to the position (scale) and the performance of the
employee, which is measured on the basis of financial and
non-financial factors. The maximum achievable percentage
of variable remuneration in general equals the position level.
This model has been in use for several years.
For the Wholesale domain, the variable remuneration before
performance year 2016 is based on a bonus pool, in which the
responsible management team awards individual bonuses on
a discretionary basis.
In 2015, we kicked off a project to structure variable
remuneration in Wholesale. The aim is to bring it in line with
that of Rural Retail where the variable remuneration is linked
to the position (scale) and performance of the employee, as
well as the performance of the Rabobank Group as a whole and
the relevant business. For some regions, this new system has
been in place since the 2015 remuneration round. The variable
remuneration system for the other regions and for the global
business lines was developed and implemented in 2016.
