Remuneration report Raiffeisen banks
The Raiffeisen Switzerland Board of Directors recommends that the Raiffeisen banks orient their respective local remuneration systems to the recommendations made by Raiffeisen Switzerland.
Raiffeisen Switzerland advises the Raiffeisen banks and supports them in structuring and implementing their local remuneration systems while retaining their autonomy. The most important features of these recommendations are as follows:
- –Remuneration for employees of Raiffeisen banks may involve fixed and variable elements. Members of the Board of Directors are ineligible to receive variable remuneration.
- –Fixed remuneration is paid based on a clearly defined job function and the employee's skills and knowledge, as in the Raiffeisen Switzerland model.
- –In accordance with the risk profile of Raiffeisen banks and their balanced business model, all remuneration (both fixed and variable) is to be provided in the form of non-deferred cash payments.
- –Variable remuneration in excess of CHF 3,000 accrues pension credits in the Raiffeisen Pension Fund.
- –The Board of Directors – usually persons within the militia system with roots in local business – decides on the overall sum of the variable remuneration, as well as on the individual allocation of the variable remuneration to members and the chairpersons of bank management.
- –The recommended allocation mechanism does not give employees an incentive to take excessively high risks, as doing so does not significantly increase remuneration.
Raiffeisen Switzerland monitors this process by regularly reviewing local remuneration systems in terms of conception and implementation and addressing irregularities with Raiffeisen banks in the context of a structured process.