Remuneration
About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
Rabobank's Vision on Remuneration
As part of Rabobank's vision on Remuneration we focus on
cooperative objectives and on Rabobank's core values. Our
background as a cooperative means we allow employees to make
an actual difference both in the local communities in which they
work and internationally by contributing to our goal of providing
a solution to the global food issue. Rabobank has a
conscientious, socially responsible and sustainable remuneration
strategy within the limits of legislation and regulations. The
financial part of the reward is targeted at market median.
Rabobankaimsto bean attractive employer. We want to hireand
retain talent, we focus on empowering our employees, and we
cherish 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. Our (global) performance
management system GROW! as well as the Dutch Development
Budgetforthe Collective Labor 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 Rabobankemployees,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 that fit 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 on market conditions, but they are always
based on the same Vision on Remuneration.
The principles and guidelines of the Vision on Remuneration are
detailed in the Group Remuneration Policy.The Group
Remuneration Policy is annually updated and complies with
(external) regulations, with Rabobank Group's business strategy,
as well as with its customer focus, core values and desired risk
profile. The policy takes into account the fact that Rabobank is an
important bank with an international scope and complex
activities. It supports solid and effective risk-management
processes designed to protect Rabobank's long-term results and
its robust capital position. This is accomplished, for example,
through the application of the cycle of risk alignment, through
raising employees' awareness of risks and through discouraging
undesirable risks (e.g. irresponsible sales practices). The policy
further 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 and leads to a
function scale for each position. Each function scale is
accompanied by a salary scale, which allows for a remuneration
ratio between levels. This is done within the Netherlands as well
as within entities outside the Netherlands that have local
benchmarks. The salary scales are set around the median of the
market for comparable work, so that it complies with Rabobank's
conscientious vision on remuneration. Within Rabobank Group,
only a specified body is eligible for variable pay. This body is
situated within Treasury, the domain Wholesale, Rural Retail and
within Rabobank's subsidiaries. Variable pay is never guaranteed
and does not reward for failure or misconduct. The link between
performance and pay is determined in performance
management documents, in which employee's contribution to
Rabobank and to their personal growth are assessed. Rabobank's
performance objectives consist of well-balanced financial and
non-financial criteria. At least half of the performance objectives
must be non-financial. The performance objectives do not
contain any incentives that might encourage behavior that is
careless or otherwise not in the clients' best interest. Also, the
objectives take into account whether the core val ues of Rabobank
are observed, such as, for instance, the empowerment of
employees. 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 working outside the Netherlands. In 2018,
Rabobank did not use the possibility provided in Dutch law to
award variable pay up to 200% in countries outside the EEA. In
2018, the variable remuneration for Rabobank Group worldwide
was EUR 198.5 million (2017: EUR 216.9 million), approximately
5% of the total amount reserved 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 clawback. For those employees eligible for variable pay,
a risk target should be part of their individual GROWlNotes. The
group of employees that might possibly have had a material
impact on the risk profile of the bank was designated as Identified
Staff. This selection is generally done annually, while in 2018 the
Annual Report 2018 - Corporate Governance
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