Corporate Governance
2016 was the first year that the new governance structure of Rabobank was operational. Per 1 January
2016 all local cooperative Rabobanks and Rabobank Nederland merged to create one cooperative bank
which operates with one banking license and one set of financial statements. The reforms brought
changes for member representatives in governance bodies, the Supervisory Board, the Executive Board,
as well as staff. At the same time, this fundamental step boosted the awareness that this member-
based governance is one of the things that makes us different. A well-functioning governance structure
and a healthy banking business enable Rabobank to pursue a strategy that other players cannot mimic.
Under these conditions, the operational course will be predominantly focused on servicing the real
economy and contributing to the sustainable development of local communities.
Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
The revision process in short
At the beginning of 2014, an internal Governance Committee
was assigned the task of formulating a future-proof governance
structure. The Committee consisted of representatives of local
supervisory bodies and chairmen of local management teams,
as well as Executive Board members of Rabobank Nederland.
Its ultimate proposals had to satisfy a number of shared
principles and rectify various shortcomings in the - working of
the - existing framework. The governance revision process took
about two years. The figure below illustrates the governance
transformation's dual aims of strengthening the cooperative
and the bank.
In order to create support for interim proposals and to offer
ample room for active participation and co-decision-making,
the Committee opted for an intensive and iterative collaborative
process with many stakeholders. This method accords with the
longstanding tradition of Rabobank to seek broadly accepted
solutions to challenging issues in interaction and dialogue
with stakeholders. Given the scope and potential impact of the
governance adaptations, numerous roundtable discussions,
information sessions, webinars and plenary meetings took place
to openly discuss all relevant issues and to reach a consensus
regarding the most desirable outcomes. A crucial element in
this debate was trust and confidence among all stakeholders.
It was broadly felt that the cooperative nature had to be firmly
anchored in the new structure.
Better cooperative
Enhanced member influence on Rabobank's strategic
course and identity
Increased transparency of roles and responsibilities in
organisation
Increased distinctiveness, enhanced visibility, tangible
participation in local communities
Streamlined decision-making process and consultative
structure
Better bank
Full and prompt compliance with new regulatory and
supervisory requirements in the future
More efficient and effective internal processes due to
abolition of delegated supervision
Improved cost efficiency
Annual accounts and income statement reflect more
strongly the financial solidity of Rabobank Group
150 Rabobank Annual Report 2016
