27. Co-worker and other administrative expenses

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Amounts in thousands of EUR

2011

2010

 

 

 

Co-worker costs:

 

 

• salary expenses

36,482

30,922

• pension expenses

3,653

3,849

• social security expenses

5,803

5,308

• temporary co-workers

3,342

3,282

• other staff costs

4,191

3,735

• capitalised co-worker costs

–810

–1,694

 

 

 

 

 

 

 

52,661

45,402

 

 

 

Other administrative expenses:

 

 

• office costs

3,893

3,278

• IT costs

3,689

3,751

• external administration costs

3,732

2,821

• travel and lodging expenses

2,480

2,068

• fees for advice and auditor

2,313

2,499

• advertising charges

7,039

6,263

• accommodation expenses

5,392

4,044

• other expenses

3,165

2,985

 

 

 

 

 

 

 

31,703

27,709

 

 

 

 

 

 

 

84,364

73,111

 

 

 

Average number of co-workers on a full-time basis

639.6

559.4

 

 

 

Pension expenses

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Amounts in thousands of EUR

2011

2010

 

 

 

Pension expenses, defined contribution schemes

1,708

2,035

Pension expenses, defined benefit pension schemes

1,945

1,814

 

 

 

 

 

 

 

3,653

3,849

 

 

 

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 49,297 a defined 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 49,297, a defined contribution schemes applies; the commitment to the participating co-workers consists of the paying the outstanding contribution.

In The Netherlands, co-workers of related parties participate in the pension scheme, too. The total pension commitment and the resulting expenses are reported with Notes in the consolidated Annual Accounts of Triodos Bank NV. Part of the expenses are charged on to 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 the outstanding contribution. Participation in the pension scheme is obligatory for co-workers in Belgium and Spain. In Belgium, the co-workers’ contribution is 2% of the salary and the employer’s contribution is 6%. In Spain, the pension contribution is 1.5% of the salary, paid in full by the employer.

In the United Kingdom and Germany, participation in the pension scheme is voluntary. In the United Kingdom, the co-workers’ contribution varies between 0% and 35% of the salary. The employer’s contribution amounts to 3% or 10% of the salary. 78% of the co-workers in the United Kingdom participate in the pension scheme. In Germany, the co-workers’ contribution is 3.33% of the salary and the employer’s contribution is 6.67%. 100% of the co-workers in Germany participate in the pension scheme.

Other expenses

The other expenses include expenses regarding the deposit guarantee scheme in the amount of EUR 0.5 million (2010: EUR 0.3 million).

Remuneration policy

The remuneration system employed by Triodos Bank is based on the principle that the income is generated by the joint efforts of all co-workers.

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 of Trustees is set at the Annual General Meeting of Shareholders and the annual Meeting of Depository Receipt Holders respectively, whereby modest remuneration is offered that sufficient qualified members can be attracted and retained.

In 2011 a new International Remuneration Policy was adopted. Key elements of this policy are:

  • Triodos Bank continues 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 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 awards to co-workers to a maximum of two months’ salary. These contributions are for extraordinary achievements and are at the discretion of management after consultation with Human Resources. Such an award is not based on pre-set targets, and always offered in retrospect.
  • An annual, collective financial reward can be paid for the overall achievements and contribution of all co-workers. This very modest amount is the same, for all co-workers and ranges from around EUR 300 to EUR 500 for each co-worker. This can be paid in cash or depository receipts of Triodos Bank NV.
  • Fixed salaries should be broadly aligned with market rates to attract and retain the right quality of co-workers.
  • 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 same ratio in The Netherlands was 9.8 in 2011), to ensure the discrepancy between the highest and lowest remunerated co-workers is not excessive.
  • Severance payments should be modest. If in a country legislation or generally accepted norms are available, these should be followed. Severance payments should, at all times, avoid rewarding underperformance.

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

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Amounts in thousands of EUR

2011

2011

2011

2010

2010

2010

Amount outstanding

Average interest rate

Repayments

Amount outstanding

Average interest rate

Repayments

 

 

 

 

 

 

 

Pierre Aeby

125

3.6%

125

3.6%

 

 

 

 

 

 

 

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

Remuneration paid to the Executive Board

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

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Amounts in thousands of EUR

2011

2010

 

 

 

Salary expenses

677

649

Pension expenses

143

141

Social expenses

27

27

 

 

 

 

 

 

 

847

817

 

 

 

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

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Amounts in thousands of EUR

2011

2010

*

Statutory director

 

 

 

Pierre Aeby*

217

206

Peter Blom*

265

258

Michael Jongeneel

195

185

 

 

 

 

 

 

 

677

649

 

 

 

Remuneration paid to the Supervisory Board

The remuneration paid to the Supervisory Board is as follows:

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Amounts in EUR

2011

2011

2011

2011

2010

 

Remuneration

Fees for Committees

Compensation for travel time

Total

Total

 

 

 

 

 

 

David Carrington

11,458

3,500

14,958

13,500

Marcos Eguiguren

11,458

4,000

3,500

18,958

16,604

Marius Frank

11,458

3,521

14,979

12,302

Mathieu van den Hoogenband

11,458

11,458

10,000

Jan Lamers

11,458

667

3,500

15,625

16,604

Margot Scheltema

11,458

5,000

16,458

14,208

Hans Voortman (Chair)

17,042

2,583

19,625

17,000

Carla van der Weerdt

11,458

3,333

14,791

6,042

 

 

 

 

 

 

 

 

 

 

 

 

 

97,248

19,104

10,500

126,852

106,260

 

 

 

 

 

 

The fees paid to Supervisory Board members were changed in the Annual General Meeting held on 20 May 2011.

The following fees apply:

  • EUR 12,500 per annum for an ordinary member;
  • EUR 18,500 per annum for the Chair;
  • EUR 4,000 per annum for a member of the Audit & Risk Committee;
  • EUR 5,000 per annum for the chair of the Audit & Risk Committee;
  • EUR 3,000 per annum for members of the Nomination and Compensation Committee;
  • EUR 4,250 per annum for the chair of the Nomination and Compensation Committee;
  • EUR 500 per meeting (to a maximum of EUR 10,000 per annum) as compensation for travelling time for those Supervisory Board members who live abroad.

Ms. van der Weerdt has been a member of the Supervisory Board since 21 May 2010.

Mr. Eguiguren, Ms. Van der Weerdt and Ms. Scheltema (Chair) are the members of the Audit & Risk Committee. Mr. Frank (Chair) and Mr. Voortman are the members of the Nomination and Compensation Committee.

Remuneration of the Board of Trustees of SAAT

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

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Amounts in EUR

2011

2011

2011

2010

 

Remuneration

Compensation for travel time

Total

Total

 

 

 

 

 

Jan van Apeldoorn (until 21th May 2010)

1,187

Marjatta van Boeschoten

3,788

3,000

6,788

6,500

Frans de Clerck (since 21th May 2010)

3,788

3,000

6,788

3,813

Luis Espiga

3,788

3,500

7,288

6,000

Chris Maryns-van Autreve (until 21th May 2010)

2,187

Jan Nijenhof

3,788

3,788

5,000

Max Rutgers van Rozenburg (Chair)

5,992

5,992

3,000

Josephine de Zwaan (since 21th May 2010)

3,788

3,788

1,813

 

 

 

 

 

 

 

 

 

 

 

24,932

9,500

34,432

29,500

 

 

 

 

 

The fees paid to members of the SAAT Board of Trustees were changed in the Annual General Meeting held on 20 May 2011.

The following fees apply:

  • EUR 4,350 per annum for an ordinary member;
  • EUR 6,700 per annum for the chairperson;
  • EUR 500 per meeting (with a maximum of ten meetings per annum) as compensation for travelling time for those Board members who live abroad.