Employees
Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
During regular Supervisory Board meetings and a joint off-site
meeting the Executive Board and the Supervisory Board
reflected on ways to achieve a smaller and more flexible
balance sheet through the pass-through and sale of assets and
by being selective in the sectors Rabobank serves. We gave
due attention to both the financial aspects and non-financial
aspects of such transactions. In the second half of 2016 we
agreed to sell the mobility solutions entity Athlon Car Lease
International B.V. This transaction has improved the Common
Equity Tier One (CET1) ratio of Rabobank, which is in line with
Rabobank's ambition to further strengthen its capital position.
At least once a year, the Executive Board and the Supervisory
Board deliberate extensively on the risk appetite of Rabobank
as a whole and of the commercial entities within Rabobank
Group. The Supervisory Board monitors whether Rabobank is
operating within set limits and following the right procedures in
case a limit is breached. Risk updates are frequently discussed in
both Risk Committee and Supervisory Board meetings.
In 2016, the Supervisory Board was informed at least quarterly on
the status of Performance Now, Rabobank's large restructuring
programme, aimed at enhancing Rabobank's performance by
increasing income and reducing costs. The Supervisory Board
also receives regular updates on the status of ongoing business
cases and projects as well. The Supervisory Board monitored the
progress and kept a close eye on actions taken by the Executive
Board to mitigate potential transition risks.
Of course keeping Rabobank healthy also entails non-financial
aspects such as strong leadership, capable employees, reliable
IT-systems and close monitoring and mitigation of a broad
spectrum of non-financial risks. In view of this, during the past
year, the Supervisory Board (in full or in one of the committees)
regularly assessed matters concerning succession planning,
talent development and education, safety and availability of IT
systems, compliance with (upcoming) rules and regulations,
operational incidents, and the follow up of In Control and audit
findings. Several audit findings were IT related, with a potential
impact on some crucial business cases, the audit committee
monitored the actions taken by the Executive Board to ensure
an adequate and (more) timely follow-up of audit findings
related to IT.
Engagement
By pursuing its dual strategy of Banking for the Netherlands
and Banking for Food, Rabobank endeavours to become
a more successful and meaningful cooperative bank over the
long term.
The Supervisory Board (in full or by means of the Cooperative
Issues Committee (CIC)) regularly monitored the progress on
these strategies in 2016. We were informed as to the activities of
Rabobank Development, Rabobank Foundation and Rabobank
International Advisory Services (RIAS). In the Supervisory Board
we also approved Arise, a joint venture between Rabobank,
Norfund and FMO for Africa,establised to reaffirm the long
term commitment of the parties involved to Africa's future
development, growth potential and local financial sector.
Supervisory Board members also show their commitment to
Rabobank by operating as 'liaison officers' both internally and
externally. Individually and as a group we invest in constructive
relationships with both internal and external stakeholders like
members (General Members' Council), regulators, the external
auditor, internal experts and the Works Council of Rabobank.
Some facts and figures on several of these contacts are
given below.
In 2016 the HR committee paid regular attention to Rabobank's
transition and the impact thereof on employees. The Works
Council and individual Rabobank employees had occasion to
share their view and feelings on this topic with Supervisory
Board members. In 2016, the HR Committee of the Supervisory
Board also discussed the organisational culture of Rabobank
based on the outcome of the Organisational Health Index (OHI),
the vitality of employees, employability, educational efforts,
employee participtation, the redesign of the performance
management system (GROW), talent and management
development, various compensation-related issues and
the widened scope for diversity (cultural differences and
occupational disabilities).
The Supervisory Board as an employer
In 2016 the Supervisory Board appointed a new Chief Financial
Officer, Bas Brouwers, and a new Chief Risk Officer, Petra van
Hoeken. During a joint off-site meeting the Executive Board
and the Supervisory Board reviewed the organisational
structure of Rabobank Nederland and the portfolios of the
individual Executive Board members. This led to the decision
to place Legal and Compliance under management of the
CRO instead of the CEO, in order to better accommodate the
new Risk Control Framework (RCF). Extensive discussions on
management development, talent management and new
ways of working led to various new appointments at higher
senior management levels in the new structure of Rabobank
Nederland.
155 Report of the Supervisory Board of Rabobank
