Remuneration policies

Our people and our knowledge are our most important capital. We want our employees to offer our clients a high level of quality and service, so we pay considerable attention to training and development and offer our employees a competitive employment package.

Remuneration policy governance

The Statutory Board sets the remuneration policy for employees, based on the advice of the Human Resource Management (HRM), Finance, Reporting & Control, Group Risk Management and Compliance departments. These, together with Group Audit, also have an important part to play in setting up, adjusting, implementing and reviewing our variable remuneration policy. They advise the Statutory and Supervisory Boards and report to them on their conclusions.

The Statutory Board is responsible for implementing our remuneration policy. The Supervisory Board approves variable pay policy, including its general principles, and oversees its implementation. Approval by the Supervisory Board is also required for our variable pay pools, any significant individual pay and individual variable pay proposed for employees designated as ‘identified staff’.

The Supervisory Board’s Remuneration Committee prepares the Supervisory Board’s decision-making on remuneration and advises it in this area.

Fixed pay

Employees’ fixed pay reflects their relevant working experience and organisational responsibilities.

Variable pay policy for Van Lanschot Kempen employees

Van Lanschot Kempen has variable pay policies in place governing all employees of F. van Lanschot Bankiers (Van Lanschot Bankiers) and Kempen & Co (Kempen), and based on the principle that outperformance is rewarded. It ought to be possible to reward employees who distinguish themselves through their performance. According to this principle, every employee can be considered for a variable pay award.

Based on operating results, the Statutory and Executive Boards determine whether variable pay will be awarded and what amount is available, taking into account factors including achievement of financial and non-financial performance criteria. The boards submit the proposed amount for the variable pay pool for the approval of the Supervisory Board, and any deviations also require Supervisory Board approval.

Once the amount available for variable pay at Van Lanschot Bankiers and Kempen has been determined, the Statutory Board decides how this variable pay will be distributed at Van Lanschot Bankiers, while Kempen’s Management Board decides on its distribution at Kempen.

The average variable pay of all employees of Van Lanschot Bankiers and Kempen who work (largely) in the Netherlands may not exceed 20% of their fixed pay. Variable pay of up to 100% of fixed pay may be granted on special grounds in individual situations. This only applies to a small number of employees.

Award

Variable pay to individual employees is awarded on the basis of individual performance, market competitiveness and special factors. An employee’s personal performance is assessed on quantitative (i.e. financial) and qualitative (non-financial) performance criteria, with some departments applying only qualitative criteria. At least 50% of any variable remuneration is based on non-financial criteria.

Individual performance is measured based on the degree to which employees have achieved targets set at the beginning of the year. Performance criteria include nothing that might encourage irresponsible risk-taking.

Variable pay is only awarded if (i) Van Lanschot Kempen’s financial position allows; (ii) it is justified by the performance of Van Lanschot Kempen, the relevant business unit and the individual employee; (iii) Van Lanschot Kempen meets the prevailing buffer requirements under the EU´s Capital Requirements Regulation (CRR), the Dutch Financial Supervision Act (Wft) and its implementing legislation; (iv) the risks taken have been reassessed and no material risks have occurred that were not expected or factored in; (v) the employee has received a good performance assessment, has met compliance targets, has not been subject to disciplinary measures and has not taken any risks that fall outside Van Lanschot Kempen’s accepted risk profile.

Payment

Variable pay can be paid to employees entirely in cash up to a gross maximum of €50,000. If it exceeds this amount, 50% of the portion above the gross figure of €50,000 is paid immediately and unconditionally and the remaining 50% conditionally and on a deferred basis over a period of three years following the year in which it was awarded.

The Statutory Board may, with the approval of the Supervisory Board, claw back all or part of the:

  • Conditional variable pay previously awarded to an employee (or former employee) if payment of the variable pay would be considered unfair or unreasonable (‘malus’); and
  • Variable pay previously paid to an employee (or former employee). This might occur, for instance, if payment was based on incorrect information about achievements or about the conditions on which the variable pay depended. If payment has taken place on the basis of such incorrect information, or has been made in conflict with the variable remuneration policy and/or applicable legislation and regulations, the Statutory Board will exercise its authority in this respect.

Long-term share plan

The 2015 long-term share plan (LTP) allows Van Lanschot Kempen to award variable remuneration to certain key employees, including identified staff. The plan is not open to members of the Statutory or Executive Boards. Offering variable remuneration in the form of depositary receipts for Class A Van Lanschot shares (‘Van Lanschot shares’), the LTP is governed by our variable remuneration policy, except where the LTP rules depart from this. Under the LTP, 60% of the Van Lanschot shares are awarded immediately and unconditionally, while 40% are awarded conditionally over a period of three years starting in the year after the year of conditional award (the vesting period).

Remuneration policy for identified staff of Van Lanschot Kempen

Identified staff are employees whose duties have a material influence on the risk profile of the business. Strict additional rules apply to the variable remuneration of this group of employees.

The identified staff remuneration policy applies to all identified staff of Van Lanschot Kempen. Members of the Statutory and Executive Boards are not eligible for variable remuneration.

The principles of the variable remuneration policy for identified staff are the same as for the variable remuneration policy of Van Lanschot Kempen. The variable remuneration of identified staff is paid 50% in cash and 50% in Van Lanschot shares, while the variable pay of identified staff of Kempen Capital Management NV (KCM) is paid 50% in cash and 50% in a flexible mix of Van Lanschot shares and investments in funds managed by KCM. In all cases, 60% of both parts of the variable remuneration is awarded immediately and unconditionally, and 40% conditionally and deferred. Once it becomes unconditional, this deferred remuneration is then paid out over a period of three years following the year of award. Whether an award becomes unconditional depends on reassessment of a number of predetermined criteria. If this reassessment leads to a review of the deferred remuneration, a malus penalty system is applied. A lock-up period of one year applies to Van Lanschot shares that have become unconditional.

For more information about our remuneration policies governing identified staff, please turn to ‘Pillar III disclosure on remuneration in 2016’ (PDF) on our Financial results page.

Statutory Board remuneration policy

The remuneration policy for members of Van Lanschot’s Statutory Board is adopted by the General Meeting following a proposal by the Supervisory Board. The policy is aimed at ensuring a balanced, sustainable and competitive remuneration package. When adopting the Statutory Board remuneration package, we consider pay ratios within the company and use a Hay Group analysis model.

We ended all variable remuneration for the Statutory Board in 2015. As partial compensation, a fixed remuneration component was awarded in the form of Van Lanschot shares with a lock-up period of three years.

The share ownership guidelines also stipulate that Van Lanschot shares held by Statutory Board members must be equivalent to the cash portion of two years’ gross salary for as long as they remain in office. Statutory Board members will gradually meet this requirement over the years through the award of fixed remuneration in the form of Van Lanschot shares.

This remuneration policy will be reviewed in 2017 in the light of developments and circumstances at that time. The General Meeting granted permission to the Supervisory Board to adjust the fixed salary of Statutory Board members if the outcome of this evaluation shows this to be necessary.

Benchmarking

In 2014, Hay Group carried out a comparison of pay levels in the Dutch financial sector and Dutch industry in general (cross-industry benchmark), as well as in the European private banking market.

The total remuneration of the Chairman of the Statutory Board came out of this exercise as being equal to the median level for comparable positions within the financial sector and below the median level for comparable positions outside the financial sector. The total remuneration of the other members of the Statutory Board was below the median level for comparable positions both inside and outside the financial sector.

List of reference groups:

Dutch financial sector

Dutch companies in general (cross-industry)

Rabobank

Shell

ING Bank

Unilever

NN Groep

Heineken

Achmea

Philips

Delta Lloyd

KPN

NIBC

AkzoNobel

Leaseplan Corp.

Ahold

APG

ASML

PGGM

DSM

AEGON Asset Management

KLM

 

Friesland Campina

 

Randstad

 

Boskalis

 

TNT

 

Fugro

 

USG People

Statutory Board remuneration package

The following table shows the remuneration package for members of the Statutory Board. There are no early retirement schemes for Board members. Their severance pay is in line with current statutory and regulatory rules and amounts to one year’s gross salary.

Statutary Board remuneration package

Type of payment

Purpose/rationale

Fixed income

Cash

Reflects responsibilities, performance and market trends

Fixed income

Van Lanschot shares

Achievement of long-term strategy

Benefits

Payment towards pension and disability insurance, reimbursement of fixed expenses

Market competitiveness

Members of the Statutory Board receive a fixed gross salary including holiday pay. Part of this salary is paid in cash in 12 equal monthly instalments. The remainder is paid as a single award in the form of Van Lanschot shares, with the proviso that Statutory Board members will receive the net equivalent in Van Lanschot shares and that Van Lanschot will pay the income tax due on their behalf (sell to cover). The salary of the Chairman of the Statutory Board amounts to €975,000 (comprising €750,000 in cash and €225,000 in the form of Van Lanschot shares). The other members of the Statutory Board receive a salary of €625,000 (€425,000 in cash and €200,000 in Van Lanschot shares).

A lock-up period of three years after transfer applies for Van Lanschot shares awarded as part of  gross salary, or longer if needed to enable an individual member of the Statutory Board to comply with the share ownership guidelines. The number of Van Lanschot shares to be awarded as part of  gross salary each year is determined on the basis of the weighted average price of the share over the first four trading days in January of the year to which the salary relates.

For more information on shares and options granted, see remuneration of the Statutory and Supervisory Boards on pages 233-236 of the 2016 financial statements.

Benefits

The members of the Statutory Board are responsible for their own pension provision, towards which they receive a payment. They also receive a payment for taking out disability insurance. These payments are calculated as a percentage of their fixed annual salary: 20% for the Chairman and 21% for the other members. The payment for disability insurance amounts to 2.45% of the fixed annual salary of the Chairman and 2.59% of the salary of the other Statutory Board members. Members receive a net payment to cover expenses amounting to €5,160 per person per year.

Supervisory Board remuneration policy

The remuneration policy of the Supervisory Board was reviewed and a proposal for a new policy was approved by the Annual General Meeting of 19 May 2016. The new policy became effective as of 1 January 2016.

The following table summarises the remuneration and expenses paid to members of the Supervisory Board.

 

Chairman

Deputy Chairman

Member

Supervisory Board membership fee

€75,000

€60,000

€50,000

Audit and Compliance Committee

€15,000

 

€10,000

Risk Committee

€12,000

 

€8,000

Remuneration Committee

€6,000

 

€4,000

Selection and Appointment Committee

€6,000

 

€4,000

Expenses

€2,500

€2,500

€2,500

Remuneration in 2016

Employees’ variable remuneration

Variable remuneration totalling €13.8 million was paid to employees (including identified staff) of Van Lanschot Kempen.

Highest remuneration

One person employed by Van Lanschot Bankiers received total annual remuneration of over €1 million in 2016.

Remuneration of the Statutory Board

The table below shows the remuneration and other payments received by members of the Statutory Board in 2016 and 2015.

Remuneration of Statutory Board (€)

 

2016

2015

 

Total fixed salary

Cash

Van

Lanschot shares

Payment for pension

Payment for disability insurance

Expenses

Miscell- aneous

Total fixed salary

Cash

Van

Lanschot shares

Payment for pension

Payment for disability insurance

Expenses

Miscell- aneous

Karl Guha

975,000

750,000

225,000

195,000

23,888

5,160

7,000

975,000

750,000

225,000

195,000

23,888

5,160

 

Constant Korthout

625,000

425,000

200,000

131,250

16,188

5,160

7,000

625,000

425,000

200,000

131,250

16,188

5,160

 

Richard Bruens

625,000

425,000

200,000

131,250

16,188

5,160

 

625,000

425,000

200,000

131,250

16,188

5,160

 

Arjan Huisman

625,000

425,000

200,000

131,250

16,188

5,160

 

625,000

425,000

200,000

131,250

16,188

5,160

 

Remuneration of the Supervisory Board

The amounts paid to the members of the Supervisory Board in 2016 and 2015 are shown in the following table. In addition, members receive annual expenses of €2,500.

Remuneration of the Supervisory Board 1 (€)  

 

2016

2015

 

Membership fee

Committee fees

Total

Membership fee

Committee fees

Total

Willy Duron (Chairman)*2

75,000

32,000

107,000

45,000

17,500

62,500

Jos Streppel (Deputy Chairman)

60,000

27,000

87,000

50,000

20,500

70,500

Jeanine Helthuis

50,000

14,000

64,000

45,000

10,500

55,500

Bernadette Langius*3

50,000

12,000

62,000

30,000

6,667

36,667

Godfried van Lanschot

50,000

10,000

60,000

45,000

13,500

58,500

Tom de Swaan*4

7,500

667

8,167

60,000

6,000

66,000

Heleen Kersten*5

 

 

 

18,750

3,125

21,875

1 Some figures have been rounded to the nearest thousand.
2 Willy Duron took over the chair from Tom de Swaan on 18 December 2015. Tom de Swaan was compensated in 2015 as Chairman of the Supervisory Board, and Willy Duron as a member of the Supervisory Board.
3 Bernadette Langius was appointed to the Supervisory Board on 13 May 2015.
4 Tom de Swaan stepped down from the Supervisory Board on 25 February 2016.
5 Heleen Kersten stepped down from the Supervisory Board on 13 May 2015.

Stock Van Lanschot (AEX): LANS More stock exchange information

The Van Lanschot website uses cookies to enhance the way it functions, for session tracking and for logging statistics. If you continue browsing our site, you agree to our use of cookies. Read more about Van Lanschot and cookies.