Remuneration

Remuneration report

The remuneration report and policy is an integral part of ABN AMRO Bank’s corporate strategy and risk profile. It maintains a sustainable balance between short and long-term value creation and builds on ABN AMRO’s long-term responsibility towards clients, society and other stakeholders.

Sustainability (risk) within ABN AMRO

Our purpose is Banking for Better, for generations to come; this purpose gives direction to our strategy and how we deliver on it. Our three strategic pillars, customer experience, sustainability and a future-proof bank, act as guiding principles in executing our strategy.

As a financial institution, the most relevant parts of our business model for sustainability related matters, are our loans and investments, because we finance large parts of the economy through our clients. In turn, these clients have their own value chains that have impacts in the real economy. In addition, our own operations can also have material impacts in some respects, for example in our role as an employer. As part of our strategy we want more of our loans to go to businesses that meet our sustainability standards and more of our Wealth Management clients to choose ESG funds and strategies.

Our focus is on sustainability and sustainability risk. Sustainability risk is defined in the risk taxonomy as the risk that Environmental, Social or Governance-related (ESG) factors have a financial or non-financial impact on ABN AMRO, either directly or via other risk types. Managing sustainability risk is a fundamental part of safeguarding our moderate risk profile and supporting ABN AMROs strategic objectives. We work to reduce these risks by setting strict rules for lending and investment.

Remuneration policy

The primary objective of ABN AMRO ’s remuneration policies is to enable ABN AMRO to attract and retain the right talent to ensure ABN AMRO meets the responsibilities towards clients, society, employees, investors and other stakeholders, now and in the future. In addition the remuneration policies provide a framework for effectively managing reward and performance in relation to and in support of the purpose, strategy, core values and long-term interests of the bank. This includes sustainability risk which is an integral part of our risk management framework.

Integrating sustainability (risk) KPIs in the remuneration policy

When awarding performance related variable remuneration, the award is based on the performance of yearly pre-defined KPIs linked to the three strategic pillars. The KPIs set should be in line with the purpose, strategy, core values and sustainable long-term interests of the bank, taking into account the risks involved.

The link with the sustainability aspects of the strategy for the Executive Board members, who do not receive any variable remuneration due to the bonus prohibition, is currently taken into account via the Dow Jones Sustainability Index and other diversity KPIs. The S&P Global ESG Dow Jones Sustainability Index (DJSI) tracks the sustainability performance of leading companies per sector. Our result on the DJSI indicates to which extend ABN AMRO deviates from the industry leaders.

For senior staff members (so called CLA+) the link with sustainability when awarding variable remuneration, is currently made via the sustainability assets (SAS) and climate plan KPI. Our climate strategy is translated into our climate plan, designed to achieve ourgoal of bringing our portfolio in line with a 1.5C maximum global warming scenario and supporting the transition to a net zero economy by 2050. For client assets, we have aligned our definition of sustainable acceleration clients assets volume (SAS) with the definitions set in the EU’s SFDR (article 8 and 9).

For other staff eligible for variable remuneration ABN AMRO sets a pool. The sustainability KPIs mentioned, are taken into account when determining this pool. Investment advisors and relationship managers are further required to follow a sustainability training focussed on both knowledge and skills, in order to strengthen the advice towards clients regarding sustainability.

Regarding sustainability risk, as for all risks, it is explicitly included in our policy that the KPIs should not provide any incentives for excessive risk taking, or the miss-selling of (sustainability-linked) products and should not steer towards behaviour that is not in the best interest of our clients. Moreover there are risk alignment mechanisms which are applied when determining the pool for variable remuneration and the individual award, potentially leading to adjustments in the size of the pool or the individual award

Remuneration Executive Board and Supervisory Board

Our remuneration policy of the Executive Board and our remuneration policy of the Supervisory Board including the accompanying letter of the chair of our Remuneration Committee were adopted during the General Meeting on 24 April 2024 (with a majority of 97.5% of the votes cast for the Executive Board Remuneration Policy and a majority of 99% of the votes cast for the Supervisory Board Remuneration Policy) and are effective as from 1 January 2024. In the preparations for our remuneration policies we invited stakeholders to consultation meetings to enable the chair of our Remuneration Committee to hear feedback and explore ways of implementing our new remuneration policies to address areas of concern. The remuneration policies were prepared with due observance of those valuable views received, mindful of (amongst more) the highly regulatory environment within which ABN AMRO Bank operates.

The individual remuneration of our Executive Board members can be found under Executive Board. The individual remuneration of our Supervisory Board members can be found in the Supervisory Board Remuneration Policy.

More information on ABN AMRO’s remuneration report is available in the Remuneration chapter of our Annual Report and our remuneration disclosures at the bottom of this page.

Downloads