Contents Foreword Management report Corporate governance
International fringe benefits
The package of fringe benefits varies strongly per country, while
the primary remuneration policy (fixed income and variable
remuneration) is determined centrally. The package of fringe
benefits is chiefly determined locally, because of differences in
local laws and regulations as well as market practice.
Benchmark
In principle, benchmarking is conducted per country
and is based on a comparison with peers in the relevant
remuneration market(s). Rabobank uses a central framework for
benchmarking within the WRR domain. This framework provides
a guideline for choosing the market position, the way in which
the peer group is selected and the remuneration elements that
are provided. It also determines how positions are linked to
those in the benchmark study, in order to ensure that Rabobank
positions are correctly compared with external market positions.
Performance management
Since 2015, Rabobank's banking business has had a single
system and process of PM. We also have one IT system in place
for logging all the PM agreements. The information provided
under 'Domestic banking domain: CLA population' also applies
to WRR; the unit's domestic and international business will also
be subject to the new PM process GROW!, rolled out worldwide
1 January 2017.
Remuneration policy for other group entities
DLL
DLL has its own remuneration policy that has been
implemented worldwide. DLL has around 5,300 employees,
4,000 of which work outside of the Netherlands. In 2016,
DLL had one employee whose total remuneration exceeded
EUR 1 million.
Remuneration package
In the Netherlands, DLL uses a remuneration package that
consists of fixed and variable remuneration components
and various fringe benefits, including a pension scheme.
The variable remuneration percentages vary from 5% to 20%,
depending on the position level. Outside of the Netherlands,
the level of the fixed income, the variable pay and the benefits
in the remuneration package are based on the local market of
the respective country.
Benchmark
In principle, benchmarking takes place per country and is
based on a comparison with relevant remuneration market(s).
Traditionally, in the Netherlands, the pay is above the median
of the financial services market, but steps are now being
taken to lower this relatively positive position in relation to
Consolidated Financial Statements Company Financial Statements Pillar 3
the labour market. For this reason, there was no structural
pay rise to employees in the Netherlands in 2016, although
one-off payments were made. Internationally, we are aiming for
a position between the median and the third quartile.
Performance management
DLL uses its own PM system. It focuses on achieving results,
bringing the DLL core values into practice and the personal
development of employees. This system facilitates the following:
Regular discussions between manager and employee about
employee's performance,
Employee's personal development,
Clear mutual expectations (of manager and employee),
Direction with regard to the realisation of business goals, and
Transparency in evaluation.
As part of the PM cycle, the manager and employee have
a number of meetings each year to agree on the target setting,
to discuss progress and to evaluate performance.
Developments in the remuneration package
In 2016, DLL took further steps to moderate variable
remuneration:
Variable remuneration was completely discontinued
- domestically and internationally - for the top levels
of management;
In the US, variable remuneration will be capped at 100% as
from 2017, as was already the case in other countries.
In North and South America, a system has been introduced
geared towards simplifying variable remuneration and applying
a bandwidth system. In 2017, we will investigate whether this
approach could be implemented in other countries.
DLL has made further progress in managing and monitoring the
terms of employment worldwide. A worldwide Compensation
Benefits monitoring plan was established in 2016, which will
form the basis of further improvements to the application of the
remuneration policy.
Rabo Real Estate Group
Remuneration policy
Rabo Real Estate Group implements its own remuneration
policy that meets the requirements of the GRP of Rabobank.
Rabo Real Estate Group has a remuneration package consisting
of fixed and variable elements, and a pension scheme.
In the Netherlands, in addition to the three members of the Board
of Directors, the group employs approximately 30 executives
and approximately 670 employees in the CLA population.
These two groups each have their own terms of employment.
114 Rabobank Annual Report 2016
