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HR policy

Remuneration policy

The number of days per co-worker spent on development and training is 3.7 days. (impact statistic)

Triodos Bank believes good and appropriate remuneration for all its co-workers is very important. It carefully monitors differences in remuneration between co-workers and between Triodos Bank and the rest of the financial and banking sector.

Triodos Bank believes that a moderate remuneration policy without bonuses creates a healthy and simple system where there is limited need for control. Key elements of the international remuneration policy are:

  • Not to offer bonus or share option schemes to either its Board members or co-workers. Financial incentives are not considered an appropriate way to motivate and reward co-workers. Sustainability is, by definition, the result of a combined effort of team members aimed at both the short and long term.
  • Triodos Bank may provide additional individual awards to co-workers up to a maximum of one month’s salary. These tokens of appreciation are for extraordinary achievements and are at the discretion of management in consultation with HR. They are not based on pre-set targets, as in conventional bonus structures, and are only offered retrospectively.
  • An annual, collective token of appreciation can be paid for the overall achievements and contribution of all co-workers. This modest amount is the same for all co-workers with a maximum of EUR 500 for each co-worker. The token of appreciation was set at EUR 300 in 2013. Instead of a monetary amount, co-workers could choose to receive an equivalent sum in Triodos Bank share certificates.
  • Fixed salaries should be broadly aligned with market rates to attract and retain the right quality of co-workers. As Triodos Bank operates in the financial market its remuneration needs to be mindful of pay in the wider sector to allow for a healthy in and outflow of co-workers. As a relatively small and developing player in its market Triodos Bank has to be able to recruit excellent co-workers at all levels. Although Triodos Bank strives to stay close to the market, it maintains a relatively flat remuneration structure. This can be challenging when recruiting for more senior positions, where salaries in the market are higher and bonuses more common.
  • The factor between the minimum and the maximum salary is monitored carefully to ensure that it is not excessive. In The Netherlands in 2013 the ratio remained the same as in 2012, at 9.4. This ratio was lower in other countries due to the smaller size of the offices and because the Triodos Bank Executive Board is based at the head office in The Netherlands.
  • Severance payments should be modest. Triodos Bank complies with any legislation or generally accepted standards in relevant countries. Underperformance is never rewarded. In 2013 severance payment was paid out 23 times.

According to article 25 of the Regulation on Sound Remuneration all banks need to report their remuneration practice for the so-called “identified staff”. There are five categories of identified staff to report on, see the tables below. In the fifth category “other” Triodos Bank does not have any co-workers, so this is not reported.

The first table gives an overview by category, the second table shows aggregated information on total remuneration, broken down by senior management and members of staff whose actions have a material impact on the risk profile of the financial institution.

Download XLS

Identified staff

# co-workers 31.12.
2013

Avg. fulltime salary 2013

Avg. of salary increase

Max. of salary increase

# TOA
collective
in 2013

# TOA
indiv.
in 2013

Avg. indiv. TOA of salary 2013

Max. indiv. TOA of salary 2013

TOA = Token of Appreciation

 

 

 

 

 

 

 

 

 

Executive director

3

229

3.0%

3.1%

3

0.0%

0.1%

Senior management

9

167

2.1%

3.3%

9

0.0%

0.4%

Responsible for control functions

25

92

3.6%

12.0%

25

7

4.2%

8.2%

Other risktakers

25

107

5.0%

25.0%

25

9

4.5%

8.0%

 

 

 

 

 

 

 

 

 

Fixed and variable remuneration awarded to Identified Staff in relation to performance year 2013, split by instrument

Download XLS

 

Identified staff in senior management positions

All other identified staff

*

All amounts in EUR 1,000.

**

For the collective Token of Appreciation granted to all co-workers, co-workers were given the option to choose for 3 depository receipts or for EUR 300 cash.

***

The amount is not published due to privacy reasons.

 

 

 

Number of staff

12

50

 

 

 

 

 

 

Remuneration*

 

 

Total fixed remuneration

2,187

4,983

Total variable remuneration

4

85

Of which cash**

4

85

Of which shares and share-linked instruments

0

0

Of which other instruments

0

0

Total amount of deferred remuneration

0

0

 

 

 

 

 

 

Welcome payments

 

 

Number of beneficiaries

0

1

Total amount

EUR 0

***

 

 

 

 

 

 

Severance payments

 

 

Number of beneficiaries

0

1

Total amount

EUR 0

***

Highest award

EUR 0

***

 

 

 

Works councils

Triodos Bank believes in the principle that the interests of co-workers and the organisation should be aligned. A works council helps to make sure that this happens. In countries where there is no works council the involvement of co-workers happens through formal and informal meetings between management and co-workers.

The Dutch works council has six members. One member stepped down in 2013. Elections were held in 2013, during which the number of seats has been extended to seven to reflect a larger organisation. At the end of 2013 three serving members had been re-elected, three newly appointed and one seat was left vacant.

In the UK a co-worker forum has been in existence since 2011 made up of elected representatives from across the business.

The German, Belgian and Spanish branches do not have a formal works council. The German branch will establish one in 2014.