ABN AMRO remuneration policy 2010-2014
- About us
In het jaarverslag over 2014 dat op 20 maart gepubliceerd is, is een extra toelichting gegeven op het beloningsbeleid van ABN AMRO in Nederland en op de aanpassingen die zijn doorgevoerd in de afgelopen jaren.
ABN AMRO has curtailed the remuneration policy for all employees in the Netherlands across the board. Various factors such as market position and competitive position and the expectations of society have been taken into account. As an employer, ABN AMRO is responsible for the continuity of the bank and ABN AMRO wants to be a reliable employer for its employees. Within this context, ABN AMRO has implemented the austerity measures in recent years. New Dutch and European laws and regulations, such as the Remuneration Policy for Financial Enterprises Act (Wbfo) and the Bonus Prohibition of State-Supported Enterprises Act, were also a reason to adjust the policy. In anticipation of that legislation, the bank has already taken clear steps to achieve structural mitigation.
Cao
ABN AMRO has made agreements in the collective labor agreement about a moderate package of employment conditions. In 2014, a baseline for 2 years was set for employees covered by the collective labor agreement. This affects approximately 99 percent of the workforce; some 18,250 FTEs in the Netherlands at the end of 2014. The limited variable remuneration (9 percent for achieving set goals to a maximum of 20 percent) has been retained unchanged within the CLA and falls within the legal frameworks.
Management Group
Adjustments have also been made to the remuneration of the Management Group, the bank's top 100. In the Netherlands, the variable part of the salary has been adjusted for this group of employees. Until 2014, they were contractually entitled to a maximum of 100 percent variable remuneration. The variable remuneration system was coordinated with the Ministry of Finance at the time and linked to clear quantitative and qualitative targets (KPIs), equally divided between financial and non-financial, such as customer satisfaction, leadership, solvency, liquidity, cost ceiling and employee satisfaction. The variable remuneration of the Management Group for 2013 was on average 60 percent. Since 2014, a year earlier than required by law, the bank has maximized the variable remuneration for this group at 20 percent. The fixed salary has been increased by 20 percent in accordance with the later Remuneration Policy for Financial Enterprises Act. Nevertheless, the total income of the Management Group decreases with an average of 5-10 percent, taking into account the fact that fixed salary is pensionable.
Board of Directors
The members of the Executive Board of ABN AMRO were recruited in 2009 and appointed in 2010. When the members of the Executive Board of ABN AMRO (excluding the chairman) were recruited in 2009, an agreement was made with the Ministry of Finance. about their employment conditions. The remuneration agreement was a fixed salary of EUR 600,000 and 50 percent variable remuneration for achieving set goals up to a maximum of 60 percent for exceeding those goals. The members of the ABN AMRO Executive Board have achieved or exceeded the targets set in recent years and were therefore contractually entitled to a total remuneration of at least EUR 900,000. However, for directors of state-supported banks, including ABN AMRO, the right to variable remuneration expired in 2011 as a result of the Bonus Prohibition of State-Supported Enterprises Act. This act included a compensation option for a maximum of 20 percent of the fixed salary. The Supervisory Board of ABN AMRO, in agreement with the shareholder, has opted to partially apply that legally permitted increase by 16.67 percent from 2012. For the years 2012 and 2013 the members of the Executive Board have waived this . The Supervisory Board has decided to pay this from 2014, so that the fixed remuneration of the members of the Executive Board from 2014 is EUR 707,500 per year. Taking into account the pensionable nature of that increase, the remuneration is 17 percent lower than the remuneration to which they have been contractually entitled since 2009 in achieving the set goals. The remuneration of the chairman of the Executive Board has not changed.
Adjustments to secondary employment conditions
Austerity of the remuneration policy can also be seen in the secondary employment conditions that apply to all employees of the bank in the Netherlands, both employees covered by the collective labor agreement and members of the Management Group and the Executive Board. For example, measures have been taken with regard to pension accrual. Since 2015, employees have also had a larger share in the pension contribution themselves. Another example of austerity in this context is the abolition of the discount on the mortgage interest for new staff and the freezing thereof for current staff.
With all the above measures, ABN AMRO has taken concrete steps in recent years towards a simple, transparent and moderate remuneration policy. In this way, the bank not only realizes cost savings in the short term, but we have a sustainable remuneration policy for our employees that fits in with these times.