HR policy and the Banking Code
The Banking Code was drawn up by the Netherlands Bankers’ Association (NVB) in response to ‘Restoring Trust’, a report published by the Advisory Committee on the Future of Banks in April 2009. Please note that all banks in the Netherlands are required to adhere to the Banking Code. At Triodos Bank our business principles guide us in carrying out our mission. So, in the light of this code, we carefully looked at the business principles and adapted them. All our co-workers adhere to these principles, and they are part of their contract of employment, which we updated in 2010.
Triodos Bank believes good and appropriate remuneration for all its co-workers is very important. Differences in remuneration between co-workers, locally and internationally, are carefully monitored. Triodos Bank does not pay any bonuses, but managers have the discretion to award individual co-workers to a maximum of two months’ salary. These awards are for extraordinary achievements. Triodos Bank paid every co-worker EUR 300, or three depository receipts for shares, for their contribution to the group’s collective achievement in 2010.
The ratio between the highest and lowest salary in The Netherlands in 2010 is 8.5 (2009: 8.5). This ratio is lower in other countries due to the smaller size of the offices and because the Triodos Bank Executive Board is based at the head office in The Netherlands.
As Triodos Bank operates in the financial market its remuneration needs to be mindful of pay in the wider sector to allow for a healthy in and outflow of co-workers. As a relatively small and strongly growing player in its market it has to be able to recruit excellent co-workers at all levels. Nevertheless Triodos Bank maintains a relatively flat remuneration structure compared to the market. This can be challenging when recruiting for more senior positions, where salaries are higher and bonuses are also more common. So Triodos Bank reviews its policy and moderates its remuneration, in line with new job families, to maintain a balance between attracting well-qualified people, and rewarding all its co-workers fairly.
Co-worker councils exist in The Netherlands and Spain, but are not a legal requirement in the Belgium, German and United Kingdom offices currently.
In The Netherlands, the council has five members plus an appointed secretary. The works council was involved in the separation of Real Estate Development and the restructuring of the business banking department during the year. Another important topic was the implementation of job families. At the end of the year elections were held: one member was eligible for reappointment. Five members were elected out of eight candidates.
In Belgium works councils are strongly regulated and linked to the unions. The election process to establish one will start in the Belgian branch at the end of 2011, and a works council established in 2012, if there are any candidates from the unions. During 2011 the German and United Kingdom branches will explore whether a works council is desirable in the future.