Remuneration policy 2022
The highlights of the policy are described below. The execution of and reporting on the remuneration policy and practices for the Executive Board, Supervisory Board, Board of SAAT, Identified Staff (co-workers in positions who may have a material impact on the risk profile of Triodos Bank) and all co-workers are described in subsequent sections.
International Remuneration and Nomination policy 2022
The International Remuneration and Nomination policy is based on the principle of human dignity and aims to enhance social coherence within the organisation. The policy incorporates all applicable legislation on remuneration. In our view, remuneration enables co-workers to earn a decent living enabling them to contribute to the organisation 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 to allow for a healthy inflow 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 exceptional1, modest and discretionary and are not an incentive to favour co-workers’ or the bank’s own interest to the detriment of Triodos Bank’s customers. This all contributes to a strong sense of being jointly responsible for realising the mission of Triodos Bank.
A revised International Remuneration and Nomination policy was approved by the Supervisory Board on 9 December 2022.
The remuneration paid to the members of the Executive Board is set by the Supervisory Board upon advice of the Remuneration Committee. The remuneration policy for the Executive Board is in accordance with the International Remuneration and Nomination policy.
Key elements of Triodos Bank's International Remuneration and Nomination policy are:
Award fair and relatively modest remuneration in the form of fixed pay for all co-workers, based on the principle that the bank’s results are the joint accomplishment of all co-workers.
Triodos Bank does not offer bonus or share option schemes to members of the Executive Board, the Supervisory Board, the Board of SAAT or co-workers. Financial incentives are not considered an appropriate way to motivate and reward co-workers in a values-based bank. In addition, long-term value creation is by its very nature the result of a combined effort by team members aimed at both the short and the long term.
Triodos Bank may provide individual tokens of appreciation. These are limited and decided on a discretionary basis. They are restricted to a maximum of one month's salary and EUR 10,000 gross each year. These contributions are for extraordinary achievements, subject to specific criteria, and are at the discretion of management after consultation with Human Resources. Tokens of appreciation are not based on preset targets and are always offered post factum. The tokens of appreciation are subject to clawback regulations in accordance with the EBA Guidelines. Members of the Executive Board are excluded from these awards. More information on the conditions regarding granting of tokens of appreciation can be found in the extract of the International Nomination and Remuneration policy as available on the website.
An annual collective token of appreciation can be paid for the overall achievements and contribution of all co-workers. This amount, with a maximum of EUR 500 gross per person, is the same for all co-workers, whether they work full time or part time, and awarded pro rata to those not in service throughout the whole year. Members of the Executive Board do not receive this award. In 2022, no collective end-of-year token of appreciation was awarded.
Triodos Bank provides local pension plans. Each country has a collective pension policy for all its co-workers if that is appropriate for the local circumstances. If there is no local policy, individual arrangements are made in the context of the labour contract. Under no circumstances are pension rights used to award specific achievements.
Severance payments are in line with the principles of the International Remuneration and Nomination policy. They should provide for entitled compensation upon the termination of the employment contract and should never reward failure or misconduct. Severance payments to members of the Executive Board do not exceed one year’s salary, in line with the DNB and EBA guidelines on sound remuneration. Severance payments to other co-workers do not exceed one year’s salary unless local legislation requires otherwise.
More details on the Triodos Bank remuneration policy are available on the website.
As part of preparation to the MTF launch, Triodos Bank will review, and update when necessary, the current International Nomination & Remuneration Policy and the Remuneration Policy for the Executive Board in due course of 2023. Triodos Bank will also develop for transparency purposes a Supervisory Board Remuneration policy in due course of 2023. Any updates to the Remuneration Policy for the Executive Board and a Remuneration Policy for the Supervisory Board are subject to approval of the annual general meeting of shareholders.
Fair remuneration
In 2022, Triodos Bank decided to pay a cost-of-living contribution to co-workers. The level of contribution was set in accordance with local income thresholds and local practices to support co-workers who are impacted most by the cost-of-living crisis. Given the aim to support the most impacted co-workers, the contribution was not paid automatically to eligible co-workers under the income threshold. Eligible co-workers had to actively opt in for the contribution. In line with Triodos Bank values, we trusted our co-workers to fairly assess whether they needed this extra support based on their personal situation.
Triodos Bank believes people should be properly and appropriately rewarded for their work. Pay is an important element of this. Remuneration within Triodos Bank is neutral for all co-workers, irrespective of gender, ethnic background, age, sexual orientation or distance to the labour market.
In 2022, we engaged an external party, AnalitiQs, to carry out an in-depth gender pay gap analysis. The outcomes lead to the conclusion that an overall correction is not needed. More information is found in the Co-worker report under Equity, diversity and inclusion.
To provide a clear insight into remuneration at Triodos Bank we report the ratio of the highest full-time salary to the median full-time salary. The ratio of the highest full-time salary to the median full-time salary was 5.1 in 2022 (2021: 5.2). This ratio is also reported in the Key Figures section at the start of this Annual Report in accordance with GRI methodology. It is reviewed and discussed within the Executive Board and with the Supervisory Board in light of developments inside and outside the organisation.
Triodos Bank seeks a healthy balance between external developments (competition and tensions in the labour market, balanced inflow and outflow of co-workers) and internal consistency. Maintaining this balance presents challenges as the business evolves, so the organisation has defined a bandwidth as a guiding principle. For the ratio of highest to median pay this stands at seven.
Remuneration of the members of the Executive Board is focused on long-term value and takes into account the internal pay ratios within the company.
Remuneration of the Executive Board in 2022
The remuneration paid to the members of the Executive Board is as follows:
The remuneration paid to the members of the Executive Board
2022 |
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Amounts in thousands of EUR | Fixed salary expenses | Pension expenses | Pension allowance for salary above EUR 114.866 | Private use company car1 | Social expenses | Severance payment | Total | ||||||
Jeroen Rijpkema, Chair | 320 | 30 | 36 | 10 | 16 | - | 412 | ||||||
Willem Horstmann2 | 151 | 15 | 14 | 2 | 9 | - | 191 | ||||||
André Haag3 | 146 | 8 | 14 | - | 7 | - | 175 | ||||||
Carla van der Weerdt | 257 | 26 | 25 | 5 | 13 | - | 326 | ||||||
Jacco Minnaar | 230 | 23 | 20 | 5 | 13 | - | 291 | ||||||
Nico Kronemeijer | 230 | 27 | 26 | 10 | 13 | - | 306 | ||||||
Total | 1,334 | 129 | 135 | 32 | 71 | - | 1,701 | ||||||
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2021 |
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Amounts in thousands of EUR | Fixed salary expenses | Pension expenses | Pension allowance for salary above EUR 112.189 | Private use company car1 | Social expenses | Severance payment | Total | ||||||||||||
Jeroen Rijpkema, Chair2 | 240 | 22 | 27 | 3 | 12 | - | 304 | ||||||||||||
Peter Blom, Chair3 | 160 | 18 | 32 | - | 7 | - | 217 | ||||||||||||
André Haag | 250 | 14 | 24 | - | 12 | - | 300 | ||||||||||||
Carla van der Weerdt | 257 | 25 | 25 | 4 | 12 | - | 323 | ||||||||||||
Jacco Minnaar4 | 58 | 5 | 5 | 1 | 3 | - | 72 | ||||||||||||
Nico Kronemeijer5 | 56 | 7 | 4 | 2 | 2 | - | 71 | ||||||||||||
Jellie Banga6 | 110 | 8 | 11 | 2 | 5 | 264 | 400 | ||||||||||||
Total | 1,131 | 99 | 128 | 12 | 53 | 264 | 1,687 | ||||||||||||
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The subsidiaries Triodos Bank UK Ltd. and Triodos Investment B.V. contributed EUR 333 thousand (2021: EUR 324 thousand) of the remuneration paid to the Executive Board.
There are no loans and advances provided to Executive Board members that were outstanding on 31 December 2022 and 2021. No other loans, advances or guarantees have been granted to members of the Executive Board, Supervisory Board members or members of the 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 the Board of SAAT.
Development of the Executive Board remuneration, company performance and co-worker remuneration
The table below shows the annual change of compensation of members of the Executive Board, of the performance of the company, and of average remuneration on a full-time equivalent basis of co-workers of Triodos Bank other than members of the Executive Board over the five most recent financial years. The remuneration of members of the Executive Board and the remuneration of co-workers are not linked to company performance. This naturally has a limited effect on the correlation with the company performance.
| 2018 | 2018 vs 2019 | 2019 | 2019 vs 2020 | 2020 | 2020 vs 2021 | 2021 | 2021 vs 2022 | 2022 | ||||||||||||||||||||
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Amounts in thousands of EUR | Amount |
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Executive Board remuneration1 |
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Jeroen Rijpkema2 |
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| 240 | n/a | 320 | ||||||||||||||||||||
Willem Horstmann3 |
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| 151 | ||||||||||||||||||||
André Haag4 |
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| 250 | 0% | 250 | n/a | 146 | ||||||||||||||||||||
Carla van der Weerdt5 |
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| 140 | n/a | 257 | 0% | 257 | 0% | 257 | ||||||||||||||||||||
Jacco Minnaar6 |
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| 58 | n/a | 230 | ||||||||||||||||||||
Nico Kronemeijer7 |
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| 56 | n/a | 230 | ||||||||||||||||||||
Peter Blom8 | 304 | 3% | 312 | 3% | 320 | n/a | 160 |
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Jellie Banga9 | 244 | 2% | 250 | 6% | 264 | n/a | 110 |
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Pierre Aeby10 | 257 | n/a | 101 |
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Company performance |
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Net profit | 35,187 | 10.9% | 39,005 | -30.3% | 27,203 | 86.6% | 50,759 | -1.6% | 49,940 | ||||||||||||||||||||
Return on equity in % | 3.3% | 1.0% | 3.4% | -32.2% | 2.3% | 81.2% | 4.1% | -3.7% | 4.0% | ||||||||||||||||||||
Operating expenses/total income | 79% | 1.0% | 80% | 0.3% | 80% | 0.1% | 80% | -0.7% | 80% | ||||||||||||||||||||
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Average co-worker renumeration11 | 60 | 2.4% | 61 | 2.5% | 63 | 2.5% | 64 | 3.0% | 66 | ||||||||||||||||||||
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Remuneration of the Supervisory Board in 2022
Remuneration paid to the Supervisory Board is set at the Annual General Meeting and the Annual Meeting of Depository Receipt holders. 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 paid to the Supervisory Board
Amounts in EUR | 2022 | 2022 | 2022 | 2022 | 2021 |
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| Remuneration | Renumeration | Compensation | Total | Total |
Mike Nawas (chair, as per 20 May 2022) | 26,192 | 4,500 | 3,000 | 33,692 | 24,308 |
Sebastien d'Hondt | 20,000 | 5,500 | 12,000 | 37,500 | 36,000 |
Susanne Hannestad (as per 28 September 2021) | 20,000 | 5,000 | 12,000 | 37,000 | 11,507 |
Danielle Melis (as per 28 September 2021) | 20,000 | 8,530 | 1,000 | 29,530 | 8,027 |
Kristina Flügel (as per 11 October 2022) | 4,493 | 1,011 | 6,000 | 11,504 | - |
Aart de Geus (Chair, until 20 May 2022) | 11,610 | 774 | - | 12,384 | 35,322 |
Ernst-Jan Boers (until 20 May 2022) | 7,671 | 2,301 | 1,000 | 10,972 | 27,000 |
Dineke Oldenhof (until 20 May 2022) | 7,671 | 1,726 | - | 9,397 | 26,307 |
Fieke van der Lecq (Vice-Chair, until 22 May 2021) | - | - | - | - | 10,624 |
| 117,637 | 29,342 | 35,000 | 181,979 | 179,095 |
The following fees apply (per annum): |
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EUR 30,000 Chair of the Supervisory Board |
EUR 20,000 Member of the Supervisory Board |
EUR 6,000 Chair of the Audit and Risk Committee |
EUR 5,000 Member of the Audit and Risk Committee |
EUR 2,500 Chair Remuneration Committee |
EUR 2,500 Chair Nomination Committee |
EUR 2,000 Member Remuneration Committee |
EUR 2,000 Member Nomination Committee |
Remuneration of the SAAT Board in 2022
The remuneration paid to members of the independent 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. 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.
Amounts in EUR | 2022 | 2022 | 2022 | 2021 |
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Jolande Sap (Chairas per 20 May 2022) | 8,832 | 1,000 | 9,832 | 7,000 |
Koen Schoors | 7,000 | 4,000 | 11,000 | 10,000 |
Mercedes Valcarel | 7,000 | 7,000 | 14,000 | 9,000 |
Tarique Arsiwalla (as per 28 September 2021) | 7,000 | 2,000 | 9,000 | 1,822 |
Roelien Ritsema van Eck (as per 28 September 2021) | 7,000 | 1,000 | 8,000 | 2,822 |
Josephine de Zwaan (Chair, until 20 May 2022) | 3,836 | 3,000 | 6,836 | 10,000 |
Willem Lageweg (Vice-Chair) (until 28 September 2021) | - | - | - | 5,226 |
| 40,668 | 18,000 | 58,668 | 45,870 |
The following fees apply (per annum): |
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EUR 7,000 Member of the Board of SAAT |
EUR 10,000 Chair of the Board of SAAT |
Remuneration of Identified Staff and all co-workers
Remuneration of Identified Staff in 2022
As of 15 March 2021, Regulation (EU) 2021/637 has become applicable, implementing technical standards with regard to public disclosures by institutions of the information referred to in Titles II and III of Part Eight of Regulation (EU) No 575/2013 of the European Parliament and of the Council. Based on article 17 of this Regulation, new templates should be used on disclosures of remuneration policies to comply with article 450 of Regulation (EU) No 575/2013. Therefore, the Remuneration of Identified Staff table is no longer included in this remuneration report. For all information on remuneration of Identified Staff we refer to our Pillar 3 report which complies with the Commission Implementing Regulation (EU) 2021/637 article 17 disclosure of remuneration policies.
Ratio highest to median salary
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The Netherlands | 4.3 | 4.5 | 4.6 | 4.6 | 4.8 | ||||||||||
Belgium | 2.8 | 2.9 | 2.8 | 2.8 | 2.9 | ||||||||||
United Kingdom3 | 5.3 | 5.2 | 5.3 | 6.0 | 4.9 | ||||||||||
Spain | 5.3 | 5.3 | 5.5 | 5.6 | 5.9 | ||||||||||
Germany | 2.7 | 2.8 | 2.9 | 2.6 | 2.7 | ||||||||||
France4 | n.a | n.a | 0.0 | 2.7 | 3.9 | ||||||||||
Total | 5.1 | 5.2 | 5.4 | 5.6 | 5.6 | ||||||||||
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Ratio increase highest salary to increase median salary
| Ratio increase highest salary to increase median salary1 | ||||||||||||||||||
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| 2022 | 2021 | 20202 | 2019 | 2018 | ||||||||||||||
The Netherlands | 0.0 | 0.0 | 0 | 0.5 | 0.5 | ||||||||||||||
Belgium | 0.2 | 0.2 | 0 | 1.4 | 0.2 | ||||||||||||||
United Kingdom3 | 1.1 | 1.1 | 0 | 8.4 | 0.7 | ||||||||||||||
Spain | 0.0 | 0.0 | 0 | 1.2 | 0.4 | ||||||||||||||
Germany | 0.7 | 0.7 | 0 | 1.5 | 1.7 | ||||||||||||||
France4 | n.a. | n.a. | n.a. | 0 | 0.6 | ||||||||||||||
Total | 0.05 | 0.06 | 0 | 0.9 | 0.6 | ||||||||||||||
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