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40 Other administrative expenses
41 Depreciation
Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
of a Rabobank Certificate (RC) as listed on the NYSE Euronext.
The instrument component is converted into DRNs at the
time of allocation on completion of the performance year.
The number of DRNs is determined on the basis of the closing
rates for Rabobank Certificates, as traded on the NYSE Euronext
during the first five trading days of February of each year.
This therefore represents both the instrument component
of the direct and the deferred portion of the variable
remuneration. The final number of DRNs relating to the deferred
portion is established on vesting (after a period of three years).
The payment of the instrument component is subject to a one
year retention period. After the end of the retention period,
the employee receives, for each DRN (or a portion thereof)
an amount in cash that corresponds with the value of the DRN
at that moment.
Payment of the variable remuneration is measured in
accordance with IAS 19 Employee benefits. The immediate
portion of the variable remuneration is recognised in the
performance year, whereas the deferred portion is recognised in
the years before vesting.
The same system also applies, in broad terms, to non-identified
staff, although no deferral policy applies to the first one
hundred thousand euros and both the immediate and the
deferred portion are paid fully in cash, which means that no
DRNs are awarded.
On 31 December 2016, the costs of equity instrument-based
payments were 13 (2015: 8). On 31 December 2016, a liability
of 30 was recognised (2015: 26) of which 10 (2015: 11) was
vested. The costs of variable remuneration paid in cash were
175 (2015: 190). The number of DRNs outstanding is presented
in the following table.
The value of a DRN is linked directly to the price of a Rabobank
Certificate. The estimated payments to be made for the variable
remuneration are shown in the following table.
On 31 December 2016
Year of payment
in millions of euros
2017
2018
2019
2020
2021
Total
Variable remuneration, excluding DRNs
173.3
6.6
8.4
9.9
198.3
DRNs
10.9
10.6
3.8
7.2
8.4
40.9
Total
184.2
17.3
12.2
17.1
8.4
239.2
On 31 December 2015
Year of payment
in millions of euros
2016
2017
2018
2019
2020
Total
Variable remuneration, excluding DRNs
189.7
6.2
7.0
7.0
209.9
DRNs
11.7
7.9
4.5
3.9
3.7
31.7
Total
201.4
14.1
11.6
10.8
3.7
241.6
in millions of euros
2016
2015
Additions and releases of provisions
1,063
506
IT expenses and software costs
718
634
Consultants fees
371
322
Training and travelling expenses
168
176
Publicity expenses
160
172
Result on derecognition and impairments on
(in)tangible assets
96
32
Other expenses
1,059
1,074
Other administrative expenses
3,635
2,916
in millions of euros
2016
2015
Depreciation of property and equipment
250
250
Depreciation of intangible assets
188
193
Depreciation
438
443
in thousands
2016
2015
Opening balance
1,037
1,014
Awarded during the year
531
249
Paid during the year
(362)
(126)
Changes from previous year
171
(100)
Closing balance
1,377
1,037
233
Notes to the consolidated financial statements