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28. Co-worker and Other Administrative Expenses

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in thousands of EUR

2017

2016

 

 

 

 

 

 

Co-worker costs:

 

 

• salary expenses

72,572

63,832

• pension expenses

9,024

8,242

• social security expenses

12,713

11,602

• temporary co-workers

13,123

10,266

• other staff costs

7,698

7,580

• capitalised co-worker costs

–6,538

–3,788

 

 

 

 

 

 

 

108,592

97,734

 

 

 

Other administrative expenses:

 

 

• office costs

5,250

5,238

• IT costs

13,263

11,105

• external administration costs

9,556

8,713

• travel and lodging expenses

3,731

3,799

• fees for advice and auditor

9,696

6,937

• advertising charges

7,072

6,935

• accommodation expenses

8,685

8,336

• regulatory expenses

10,137

8,681

• other expenses

3,600

3,154

 

 

 

 

 

 

 

70,990

62,898

 

 

 

 

 

 

 

179,582

160,632

 

 

 

Average number FTE’s during the year

1,203.2

1,094.9

 

 

 

Pension expenses

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in thousands of EUR

2017

2016

 

 

 

 

 

 

Pension expenses, defined contribution schemes

3,364

3,124

Pension expenses, defined benefit pension schemes

5,660

5,118

 

 

 

 

 

 

 

9,024

8,242

 

 

 

The pension expenses for the defined contribution schemes and the defined benefit pension schemes are based on the contributions owed for the financial year.

Pension scheme per country

Triodos Bank’s pension scheme in The Netherlands is a combination of a defined benefit pension scheme and a defined contribution scheme. For the part of the gross annual salary up to EUR 52,766 a defined benefit pension scheme applies; the obligation vis-à-vis the participating co-workers consists of the granting of the accrued pension. For the part of the gross annual salary above EUR 52,766, a defined contribution scheme applies; the commitment to the participating co-workers consists of paying the outstanding contribution to a maximum of EUR 103,317.

In The Netherlands, co-workers of related parties also participate in the pension scheme. The total pension commitment and the resulting expenses are reported within the Notes to the consolidated Annual Accounts of Triodos Bank NV. Part of the expenses are charged to the respective related parties, based on their share of the total salaries of the participating co-workers.

The Triodos Bank pension schemes in Belgium, the United Kingdom, Spain and Germany are defined contribution schemes that have been placed with life insurance companies in those countries. The commitment to the participating co-workers consists of paying any outstanding contribution. Participation in the pension scheme is obligatory for co-workers in Belgium, Spain and  the United Kingdom. In Belgium, co-workers’ contribution is 2% of salary and the employer’s contribution is 6%. In Spain, the pension contribution is 1.5% of salary, paid in full by the employer. In the United Kingdom, the co-workers’ contributions are optional with those who opt to do so contributing between 1% and 10% of their salary, and the employer’s contribution amounts to 5% or 10% of salary depending on length of service.

In Germany, participation in the pension scheme is voluntary. The co-workers’ contribution is 3.33% of the salary and the employer’s contribution is 6.67%. 98% of the co-workers in Germany participate in the pension scheme.

International Remuneration and Nomination policy

The International Remuneration & Nomination Policy is based on the principle of human dignity and aims to enhance social coherence within the organization. The policy incorporates the Regulation of the Dutch Central Bank on Sound Remuneration Policies, the EBA Guidelines on Sound Remuneration Policies, EBA Guidelines on remuneration of sales staff and GRI standards for sustainability reporting. In our view remuneration enables co-workers to earn a decent living and to contribute to the organization and society at large. Triodos Bank believes in the intrinsic motivation of its co-workers to contribute to our mission and to work according to our corporate values. The richness of the contribution of each co-worker cannot be translated into a linear, financial incentive.

Triodos Bank operates in the financial sector. Therefore its remuneration practice needs to be within the scope of what is expected in the financial sector. It allows for a healthy in- and outflow of co-workers. At the same time Triodos Bank maintains a relatively low ratio between the lower and higher level of salaries paid. Variable components are modest and discretionary. This all contributes to a strong sense of being jointly responsible for realizing the mission of Triodos Bank.

This International Remuneration and Nomination Policy has been revised in 2017 and was approved by the Supervisory Board on November 10th, 2017.

The remuneration paid to the members of the Executive Board is set by the Supervisory Board upon advice of the Nomination and Compensation Committee. The basic principles of the Triodos Bank remuneration system are taken into account.

The remuneration paid to Supervisory Board members and members of the Foundation for the Administration of Triodos Bank Shares (SAAT) Board is set at the Annual General Meeting and the Annual Meeting of Depository Receipt Holders respectively, whereby modest remuneration is offered so that sufficient qualified members can be attracted and retained.

Key elements of Triodos Bank’s international remuneration policy are:

  • Triodos Bank does not offer bonus or share option schemes to either members of the Executive Board, the Supervisory Board, the Board of SAAT nor to co-workers. Financial incentives are not considered an appropriate way to motivate and reward co-workers in a values-based bank. In addition, sustainability is by its very nature the result of a combined effort by team members aimed at both the short and long term.
  • Triodos Bank may provide additional individual "Tokens of Appreciation”. These Tokens of appreciation are very limited and discretionally decided and are maximum one months’ salary with a maximum of EUR 10,000 gross a year. These contributions are for extraordinary achievements and are at the discretion of management after consultation with Human Resources. Such a token is not based on pre-set targets, and always offered in retrospect. The Tokens of Appreciation are subject to claw back arrangements. The members of the Executive Board are excluded from these awards.
  • An annual, collective token of appreciation can be paid for the overall achievements and contribution of all co-workers. This very modest amount is the same, for all co-workers with a maximum of EUR 500 gross for each co-worker. This can be paid in cash or in Triodos Bank NV depository receipts. For 2017 no collective end-of-year token of appreciation was awarded.
  • The factor by which the maximum salary in the lowest scale and the maximum salary for senior management differs, will be monitored carefully in each country (the ratio in The Netherlands was 9.9 in 2017 (it was 9.9 in 2016 and 9.8 in 2015)), to ensure the discrepancy between the highest and lowest remunerated co-workers is not excessive. Some specific cases are excluded from this ratio, for example when very junior co-workers are recruited as a kind of apprenticeship or less qualified/educated people are appointed to create job opportunities for vulnerable people.
  • Severance payments should be modest and should never reward failure or misconduct. Severance payments to members of the Executive Board do not exceed one year’s salary.

More details on the Triodos Bank remuneration policy are available on the www.triodos.com website.

The table below provides the loans that have been granted to the members of the Executive Board.

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2017

2016

in thousands of EUR

Amount outstanding

Average interest rate

Repay­ments

Amount outstanding

Average interest rate

Repay­ments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pierre Aeby

125

2.2%

125

2.2%

Jellie Banga

496

1.9%

579

2.0%

 

 

 

 

 

 

 

No other loans, advances or guarantees have been granted to members of the Executive Board, Supervisory Board members or members of Board of SAAT. For reasons of principle, no share option scheme is offered to members of the Executive Board, Supervisory Board members or members of Board of SAAT.

Remuneration paid to the Executive Board

The remuneration paid to the members of the Executive Board is as follows:

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in thousands of EUR

2017

2016

 

 

 

 

 

 

Fixed salary expenses

793

778

Pension expenses

80

74

Pension allowance for salary above EUR 100.000

122

115

Private use company car

11

43

Social expenses

34

34

 

 

 

 

 

 

 

1,040

1,044

 

 

 

The salary expenses of the Executive Board may be broken down as follows:

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in thousands of EUR

2017

2016

 

 

 

 

 

 

Peter Blom, Chair

300

300

Pierre Aeby

253

253

Jellie Banga

240

225

 

 

 

 

 

 

 

793

778

 

 

 

Remuneration paid to the Supervisory Board

The remuneration paid to the Supervisory Board members is as follows:

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2017

2017

2017

2017

2016

Amounts in EUR

Remuneration

Remuneration Committees

Compen­sation for travel time

Total

Total

 

 

 

 

 

 

 

 

 

 

 

 

Aart de Geus (Chair)

25,000

3,000

2,000

30,000

30,000

Carla van der Weerdt (Vice-Chair)

17,500

5,000

2,000

24,500

25,500

Ernst-Jan Boers

17,500

6,479

2,000

25,979

23,500

David Carrington (until 19 May 2017)

7,291

1,667

5,000

13,958

32,500

Mathieu van den Hoogenband (until 19 May 2017)

7,291

1,771

3,000

12,062

28,750

Fieke van der Lecq (as per 19 May 2017)

10,812

2,471

13,283

Gary Page (as per 19 May 2017)

10,812

2,471

5,000

18,283

Udo Philipp

17,500

3,000

8,000

28,500

29,500

 

 

 

 

 

 

 

 

 

 

 

 

 

113,706

25,859

27,000

166,565

169,750

 

 

 

 

 

 

The following fees apply (per annum):

  • EUR 17,500 Member of the Supervisory Board;
  • EUR 25,000 Chair of the Supervisory Board;
  • EUR 4,000 Member of the Audit & Risk Committee;
  • EUR 5,000 Chair of the Audit & Risk Committee;
  • EUR 3,000 Member of the Nomination and Compensation Committee;
  • EUR 4,250 Chair of the Nomination and Compensation Committee;

Supervisory Board members who travel to a meeting outside their home country receive EUR 1,000 per return travel (to a maximum of EUR 12,000 per annum) as compensation for travelling time.

Remuneration of the Board of SAAT

The remuneration for the members of the Board of the Foundation for the Administration of Triodos Bank Shares, is as follows (amounts in EUR):

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2017

2017

2017

2016

Amounts in EUR

Remuneration

Compen­sation for travel time

Total

Total

 

 

 

 

 

 

 

 

 

 

Josephine de Zwaan (Chair)

10,000

3,000

13,000

18,000

Mike Nawas (Vice-Chair)

7,000

6,000

13,000

16,000

Marjatta van Boeschoten

7,000

5,000

12,000

13,000

Sandra Castaneda Elena (until 19 April 2017)

2,333

2,000

4,333

12,000

Frans de Clerck

7,000

6,000

13,000

15,000

Willem Lageweg (as per 20 May 2016)

7,000

1,000

8,000

4,083

Koen Schoors (as per 19 May 2017)

4,083

3,000

7,083

 

 

 

 

 

 

 

 

 

 

 

44,416

26,000

70,416

78,083

 

 

 

 

 

The following fees apply (per annum):

  • EUR 7,000 Member of the Board of SAAT;
  • EUR 10,000 Chair of the Board of SAAT;

Board of SAAT members who travel to a meeting outside their home country receive EUR 1,000 per return travel (to a maximum of EUR 12,000 per annum) as compensation for travelling time.

Auditor’s fees

The table below specifies the fees of the PricewaterhouseCoopers Accountants N.V. (‘PwC Accountants NV’) audit firm that relates to services concerning the financial year.

The column Other PwC network specifies the fees that were invoiced by PwC units with the exception of PwC Accountants NV.

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2017
in thousands of EUR

PwC
Accountants NV

Other
PwC network

Total
PwC network

 

 

 

 

 

 

 

 

Audit of the financial statements

592

317

909

Other audit-related engagements

145

145

Tax-related advisory services

Other non-audit services

 

 

 

 

 

 

 

 

Total

737

317

1,054

 

 

 

 

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2016
in thousands of EUR

PwC
Accountants NV

Other
PwC network

Total
PwC network

 

 

 

 

 

 

 

 

Audit of the financial statements

473

287

760

Other audit-related engagements

365

365

Tax-related advisory services

Other non-audit services

 

 

 

 

 

 

 

 

Total

838

287

1,125

 

 

 

 

Our auditor, PwC Accountants NV, has rendered, for the period to which our statutory audit 2017 relates, in addition to the audit of the statutory financial statements the following services to the company and its controlled entities.

Other audit services required by law or regulatory requirements:

  • Statutory audits of controlled entities
  • Audit of the regulatory returns to be submitted to the Dutch Central Bank and the National Bank of Belgium
  • Assurance engagement on cost price models to be submitted to the AFM
  • Assurance engagement on segregation of assets to be submitted to the AFM

Other audit services:

  • Assurance engagement on the sustainability report
  • Assurance engagement profit forecast
  • ISAE type II engagement
  • Agreed upon procedures on interest rate risk and DGS reporting to the Dutch Central Bank

Regulatory expenses

The regulatory expenses can be broken down as follows:

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in thousands of EUR

2017

2016

 

 

 

 

 

 

Bank tax

2,653

2,276

Depository Guarantee Scheme

6,820

5,874

Single resolution fund

664

531

 

 

 

 

 

 

 

10,137

8,681