in thousands of EUR

2018

2017

Co-worker costs:

 

 

• salary expenses

77,625

72,572

• pension expenses

11,888

9,024

• social security expenses

14,807

12,713

• temporary co-workers

15,397

13,123

• other staff costs

8,320

7,698

• capitalised co-worker costs

–7,256

–6,538

 

120,781

108,592

 

 

 

Other administrative expenses:

 

 

• office costs

5,110

5,250

• IT costs

13,560

13,263

• external administration costs

8,882

9,556

• travel and lodging expenses

3,900

3,731

• fees for advice and auditor

11,156

9,696

• advertising charges

6,290

7,072

• accommodation expenses

8,812

8,685

• regulatory expenses

12,133

10,137

• other expenses

7,788

3,600

 

77,631

70,990

 

 

 

 

198,412

179,582

 

 

 

Average number FTE’s during the year

1,296.7

1,203.2

Pension expenses

in thousands of EUR

2018

2017

Pension expenses, defined contribution schemes

5,808

3,364

Pension expenses, defined benefit pension schemes

6,080

5,660

 

11,888

9,024

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 53,706 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 53,706, a defined contribution scheme applies; the commitment to the participating co-workers consists of paying the outstanding contribution to a maximum of EUR 105,075.

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 N.V. 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 20% 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 organisation. 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 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. 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 realising the mission of Triodos Bank.

This International Remuneration and Nomination Policy has been revised in 2018 and was approved by the Supervisory Board on 14 December 2018.

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 N.V. depository receipts. For 2018 no collective end-of-year token of appreciation was awarded. This amount is equal for all co-workers whether they work full-time or part time and pro-rata if not in service throughout the whole year. The members of the Executive Board refrain from this award.
  • 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 2018 (it was 9.9 in 2017 and 9.9 in 2016)), 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.

 

2018

2017

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

464

1.7%

32

496

1.9%

83

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:

in thousands of EUR

2018

2017

Fixed salary expenses

805

793

Pension expenses

81

80

Pension allowance for salary above EUR 100,000

123

122

Private use company car

11

11

Social expenses

40

34

 

1,060

1,040

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

in thousands of EUR

2018

2017

Peter Blom, Chair

304

300

Pierre Aeby

257

253

Jellie Banga

244

240

 

805

793

Remuneration paid to the Supervisory Board

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

 

2018

2017

Amounts in EUR

Remuneration

Remuneration Committees

Compen­sation for travel time

Total

Total

1)

In addition Gary Page provided consultancy services to the UK branch of Triodos Bank related to Brexit preparations. These services were rendered outside of the scope of his responsibility as a member of the Supervisory Board. In 2018 the remuneration for these services was GBP 13,333.

Aart de Geus (Chair)

25,000

3,000

2,000

30,000

30,000

Carla van der Weerdt (Vice-Chair)

17,500

5,000

1,000

23,500

24,500

Ernst-Jan Boers

17,500

4,250

4,000

25,750

25,979

David Carrington (until 19 May 2017)

13,958

Mathieu van den Hoogenband (until 19 May 2017)

12,062

Fieke van der Lecq

17,500

4,000

2,000

23,500

13,283

Gary Page1)

17,500

4,000

10,000

31,500

18,283

Udo Philipp

17,500

3,000

10,000

30,500

28,500

Dineke Oldenhof (as per 18 May 2018)

11,667

2,000

1,000

14,667

 

124,167

25,250

30,000

179,417

166,565

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 and Risk Committee;
  • EUR 5,000 Chair of the Audit and 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:

 

2018

2017

Amounts in EUR

Remuneration

Compen­sation for travel time

Total

Total

Josephine de Zwaan (Chair)

10,000

5,000

15,000

13,000

Mike Nawas (Vice-Chair)

7,000

7,000

14,000

13,000

Marjatta van Boeschoten (until 18 May 2018)

2,917

3,000

5,917

12,000

Sandra Castaneda Elena (until 19 April 2017)

4,333

Frans de Clerck (until 18 May 2018)

2,917

2,000

4,917

13,000

Willem Lageweg

7,000

1,000

8,000

8,000

Koen Schoors

7,000

8,000

15,000

7,083

Nikolai Keller (as per 18 May 2018)

4,667

3,000

7,667

 

41,501

29,000

70,501

70,416

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 N.V.’) 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 N.V.

2018
in thousands of EUR

PwC
Accountants N.V.

Other
PwC network

Total
PwC network

Audit of the financial statements

793

318

1,111

Other audit-related engagements

65

65

Tax-related advisory services

Other non-audit services

Total

858

318

1,176

2017
in thousands of EUR

PwC
Accountants N.V.

Other
PwC network

Total
PwC network

Audit of the financial statements

793

317

1,110

Other audit-related engagements

145

145

Tax-related advisory services

Other non-audit services

Total

938

317

1,255

Our auditor, PwC Accountants NV, has rendered, for the period to which our statutory audit 2018 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 relating to Triodos Investment Management BV
  • Agreed upon procedures on interest rate risk to the Dutch Central Bank
  • ISAE type I on DGS reporting to the Dutch Central Bank
  • Assurance engagement on credit claims to the Dutch Central Bank

Regulatory expenses

The regulatory expenses can be broken down as follows:

in thousands of EUR

2018

2017

Bank tax

2,877

2,653

Depository Guarantee Scheme

8,488

6,820

Single resolution fund

768

664

 

12,133

10,137