Remuneration
Rabobank and its vision on reward and remuneration
Focus on cooperative objectives and core values of Rabobank are part of Rabobank's Vision on
Remuneration. Our background as a cooperative means we allow employees to make a real
difference both in the local communities where they work and internationally by contributing to
our goal of providing a solution to the global food issue.
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Rabobank has a conscientious, socially responsible and
sustainable remuneration strategy within the bounds of
legislation and regulations. The financial part of reward is
targeted at market median.
Rabobank aims to be an attractive employer to hire and retain
talent, and focuses on empowering its employees in all their
diversity.This is done not only by offering fair remuneration
packages, but also by providing a valuable set of secondary
conditions, such as an attractive working environment, a good
pension structure and focus on the development of employees.
The new performance management system GROW! (national
and international) and the introduction of the Development
Budget in the Netherlands for the Collective Labour Agreement
(CLA) population and executives, contribute to employees'
professional and personal development.
Remuneration policies
Rabobank's remuneration policy is captured in several
documents. For most Rabobank employees, the CLA is
applicable. A separate remuneration policy applies to the
Managing Board and other executives. DLL and Rabo Real Estate
Group have each adopted remuneration policies of their own
within the framework. Remuneration policies for Wholesale,
Rural Retail (WRR), DLL and Rabo Real Estate Group entities
located outside the Netherlands are partly based on local
legislation and regulations, as well as market conditions, but
always based on the same vision on reward and remuneration.
The principles and guidelines of the Vision on Remuneration
are detailed in the Group Remuneration Policy (GRP).The GRP
is annually updated and complies with (external) regulation,
with Rabobank Group's business strategy, customer focus,
core values and desired risk profile. The policy supports solid
and effective risk-management processes designed to protect
Rabobank's long-term results and support its robust capital
position, for example in the application of the cycle of risk
alignment, while also raising employees'awareness of risks and
discouraging taking undesirable risks (e.g. irresponsible sales
practices). It encourages employees to aim for lasting results in
line with the long-term interests of Rabobank Group, its clients
and other stakeholders.
General outlines of the policy
In general, fixed pay is based on job evaluation leading to
a function scale for each position. Each function scale is
accompanied by a salary scale, to set a remuneration ratio
between levels.This is done in the Netherlands as well as
with entities outside the Netherlands. The salary scales are
set around the median of the market for comparable work,
to fit Rabobank's conscientious vision on remuneration.
In countries outside the Netherlands, this is done by local
benchmarks as well. Within Rabobank Group, only a specified
population is eligible to variable pay. These are employees in
the Wholesale, Rural Retail domain, Treasury or employed
by one of Rabobank's subsidiaries. Variable pay is never
guaranteed and does not reward for failure or misconduct.
The link between performance and pay is demonstrated
within performance management documents, in which the
contribution to Rabobank and the employee's personal growth
are assessed. Rabobank complies with Dutch and European
legislation, maximizing variable pay to an average of 20% of
fixed pay for employees working in the Netherlands, and a
maximum of 100% for employees outside the Netherlands. In
2017, Rabobank did not use the possibility provided in Dutch
law to award variable pay up to 200% in countries outside the
EEA. In 2017, the variable remuneration for Rabobank Group
worldwide was EUR 216.9 million (2016: EUR 210 million), this is
approximately 5% of the total amount for remuneration.
For all variable payments, several risk mitigating measures are
in place, such as ex ante and ex post testing and the ability
to apply malus or claw back. For those employees eligible to
variable pay, a risk target should be part of their individual
GROWiNotes.The group of employees (potentially) having a
material impact on the risk profile of the bank were assigned
as Identified Staff.The selection is done annually and apart
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