ABN AMRO Bank N : – Remuneration report 2022

ABN AMRO Bank N.V.

Remuneration Report 2022

ABN AMRO Remuneration report 2022

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Remuneration report

Letter from the Chair of the Remuneration Committee

Dear reader,

We hereby present our remuneration report for the year 2022. In this letter, I would like to reflect briefly on some key topics and considerations for the Remuneration Committee in the past year.

Annual end of year process

One of the key topics for the Remuneration Committee is the annual performance management process. The weighting assigned to the individual objectives increased in comparison to the previous year, leading to more individual accountability. In addition, the 2022 targets for the Executive Board members were redistributed within the applicable Executive Board KPI framework, in accordance with the Executive Board Remuneration Policy. The KPIs and targets for CLA+ employees (i.e. employees appointed at a job level that exceeds the CLA job level) were also adjusted to put more emphasis on financial growth and targets for sustainability assets were included.

Composition of Executive Board and Supervisory Board

Tom de Swaan was reappointed Chair of the Supervisory Board for another four years at the Annual General Meeting in April 2022. Sarah Russell was appointed to the Supervisory Board at the same meeting.

The Executive Board underwent various changes in 2022. Christian Bornfeld stepped down as Chief Information & Technology Officer (CITO) effective 1 May 2022, while Gerard Penning stepped down as Chief Human Resources Officer (CHRO) effective 1 December 2022. Annerie Vreugdenhil was appointed CCO Personal & Business Banking effective 1 March 2022, and Carsten Bittner was appointed CI&TO effective 1 January 2023. On 11 January 2023, Lars Kramer announced that he would step down as Chief Financial Officer (CFO) effective 30 April 2023. On behalf of the Remuneration Committee, I would like to express my appreciation for the contributions of Christian Bornfeld, Gerard Penning and Lars Kramer and am pleased to welcome Annerie Vreugdenhil and Carsten Bittner to the Executive Board.

It was announced on 1 February 2023 that ABN AMRO also planned to change the composition of the Executive Board to further strengthen strategy execution. A Chief Operations Officer (COO) position has consequently been added to the Executive Board. The COO will have primary responsibility for bank-wide operational performance and for accelerating

change management in close consultation with the other Executive Board members. The COO will head the central management of operations, including the Detecting Financial Crime unit. In addition, the CHRO will no longer sit on the Executive Board and will report directly to the CEO.

Negotiations on Collective Labour Agreement ('CLA')

Our Collective Labour Agreements (comprising of the Employment Conditions CLA and the Social Plan) are applicable to the vast majority of the bank's employees in the Netherlands.

In the meetings held between June and October 2022, the Remuneration Committee closely followed and discussed the negotiations with the trade unions on the Employment Conditions CLA that reached the end of its term on 1 July 2022. The tension between offering appropriate remuneration and rewarding staff in times of high inflation versus the cost targets of the bank was a dilemma duly considered by the Remuneration Committee.

CLAs were also agreed in France, Germany and Belgium in 2022, as further described in detail in this report.

Diversity & equal pay

We aim to provide a working environment where everyone can be themselves and feel safe, regardless of their race, ethnicity, gender, religion, age, disability, sexual orientation, gender identity or gender expression. In 2022, we received the first ever IT Vitae Diamond Award for employers who have successful and sustainable policies for recruitment, communication and guidance of highly gifted employees and employees with autism.

Equal pay for equal work and work of equal value is an important principle at ABN AMRO and our progress in this area is continuously monitored. The results and our progress on this topic were published on 11 November 2022. In the past few years, ABN AMRO has achieved good results on equal pay for the CLA population in the Netherlands. With effect from 1 January 2022, a new remuneration methodology was introduced for Dutch CLA+ employees (i.e. employees in jobs above the CLA job levels)

ABN AMRO Remuneration report 2022

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to improve our efforts to ensure equal pay for equal work or work of equal value. The gender pay gap and equal pay developments in offices abroad are also annually monitored.

Diversity percentages are continually monitored. The gender diversity of the Extended Leadership Team decreased from 47% female employees on 1 January 2022 to 44% female employees on 31 December 2022.

In 2022, 3 of the 8 board positions (per year end) of the Executive Board and 4 of the 7 board positions of the Supervisory Board were female. The current composition of the Supervisory Board complies with the Act on Gender Balance in Management and Supervisory Boards (Wet Evenwichtiger verhouding tussen mannen en vrouwen in bestuur en raden van commissarissen), which entered into force on 1 January 2022.

Employee Engagement

An annual Employee Engagement Survey is performed throughout the bank. The Supervisory Board considers employee engagement and employee satisfaction key topics and monitors the results of the periodic engagement.

In 2023, one of the key focus areas of the Remuneration Committee will be the update of the Executive Board Remuneration Policy and the Supervisory Board Remuneration Policy, on which we will report in the 2024 annual report.

On behalf of the Remuneration Committee of the Supervisory Board,

Arjen Dorland

Chair of the Remuneration Committee

ABN AMRO Remuneration report 2022

Remuneration principles and policies

General

Our purpose - Banking for better, for generations to come

• guides us through change, is the basis for how we shape and deliver on our strategy, and encourages high performance and engagement from our employees. Our strategy has three strategic pillars: customer experience,

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sustainability and future-proof bank. These are our guiding principles in acting on our purpose.

We want to create value for society, not only as a provider of financial services to our clients, but also as an employer. We refer to the Strategy, value creation & performance chapter of the Integrated Annual Report for further context.

Remuneration principles

Purpose & Strategy

Banking for better,

for generations to come

Our strategic pillars

Customer	Sustainability	Future-proof
experience		bank

Reward philosophy

Our reward framework enables ABN AMRO to attract, motivate, develop and retain the right talent in a sustainable manner to realise our business strategy

Compliant & Responsible

• Compliant with the boundaries of all applicable remuneration legislation and guidelines
• Respectful of our societal role and impact, our client's interests and other stakeholders

To successfully execute our strategy we aim to create conditions in which all our employees can use their talents to contribute to our goals and to develop or acquire the right skills. We strive to achieve a future-proof workforce, with an

Reward philosophy

Fair & Transparent

• Clear remuneration policies and processes
• Principle of equal pay for equal work or work of equal value
• Balanced total remuneration package in line with the relevant market

Align Employee with ABN AMRO interests

• Clarity in how (individual) performance and remuneration are connected
• Balanced risk taking in line with our moderate risk appetite
• Encourages personal development and values-led behaviour as integral part of performance

excellent employee experience and inspiring leadership, alongside efficient organisational structures, processes and IT systems that help our employees work more effectively.

ABN AMRO Remuneration report 2022

Key in achieving a future-proof workforce is a remuneration framework that enables ABN AMRO to attract, motivate, develop and retain the right talent to realise our strategy. Our remuneration policy and principles are set out in the Global Reward Policy, providing a framework for effectively managing reward and performance to support the strategy (including the risk strategy), KPIs, values and long-term interests of the bank. The Global Reward Policy applies to all employees within ABN AMRO and at all group companies, subsidiaries, branches, representative offices and legal entities under its control.

The Executive Board and Supervisory Board approve the Global Reward Policy and are responsible for its maintenance and implementation. The policy is reviewed regularly, taking into consideration the company's strategy and desired culture, as well as factors such as risk awareness, targets, corporate values and any updates due to laws and regulations.

Composition of remuneration packages

A typical remuneration package for ABN AMRO employees consists of an annual base salary, annual variable remuneration (if the relevant market practice so requires, mainly outside the Netherlands) and fringe benefits. Different ranges apply to the various salary scales in each country, but in principle we position our remuneration levels around the median of the relevant labour market, based on benchmarking, while keeping labour costs under control.

ABN AMRO's Employment Conditions CLA governs the remuneration packages for CLA employees based in the Netherlands (including Identified Staff).

Employment conditions supporting environmental and social awareness

Sustainability is an important aspect of our strategy and purpose. Therefore, our employment conditions and practices aim to promote environmental and social awareness.

Gender pay gap

The gender pay gap is the difference in average gross salaries between men and women. ABN AMRO calculates the overall gender pay gap, as well as the gender pay gap corrected per job level (whereby each job level is linked to a salary scale), for its employees in the Netherlands. For ABN AMRO employees working in the Netherlands, the gender pay gap corrected per job level amounts to 0.65% in favour of men (compared to 0.27% in 2021). The overall gender pay gap (i.e. uncorrected per salary scale) in 2022 amounted to 15% in favour of men (compared to 14.7% in 2021). The overall gender pay gap is mainly caused by more men than women holding positions at higher job levels. We will continue to focus on increasing gender diversity in higher job levels to reduce the overall gender pay gap. Our ambition is illustrated by the D&I targets which are set to this extent.

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Equal pay

We are committed to the principle of equal pay for equal work or work of equal value. The New Job Model (NJM) is our generic job profile methodology, in which all Dutch CLA jobs are plotted and which is also implemented in other countries where ABN AMRO is operating. Each NJM job profile has a job grade that is determined in line with the Hay methodology, which is recognised as a gender-neutral, objective and verifiable job-grading methodology. In the Netherlands, each Hay level at CLA and CLA+ level has its own salary scale. Our remuneration policy contains guidelines for various moments of remuneration, i.e. salary setting for new hires, annual salary increases, incidental salary increases, promotion and variable remuneration.

Periodic research is conducted on the development of equal pay in our remuneration policies and practices, whereby salaries of men and women are compared (at CLA and CLA+ level), as well as salaries of western and non-western employees. Our research shows a consistent practice

of equal pay. Where the research reveals differences in salaries, further research is conducted. Our research results in the Netherlands for 2022 were published on the

ABN AMRO website on 11 November 2022 (Equal Pay Day).

Employment conditions

The CLA contains the following employment conditions aiming to promote environmental and social awareness:

• hybrid working is an explicit employment condition
• the transportation budget (which could be used for lease cars) will be phased out, partly because hybrid working significantly reduces home-to-work travel compared with the pre-Covid-19 situation
• allowances for working from home (reimbursement for home office equipment, a monetary allowance for working from home and an internet allowance)
• reskilling (e.g. through the 'Bank in the classroom' programme that facilitates moves from jobs at the bank to jobs in teaching)
• ABN AMRO assigns 0.25% of its total salary expenses to improving the position of minority groups
• our Reboot programme, which sets targets for hiring refugees and employees with a disability

The Diversity & Inclusion section of this Integrated Annual Report describes our various other initiatives relating to sustainable employment conditions.

Sustainable KPI-setting

Variable remuneration is awarded based on pre-defined KPIs. For our Identified Staff, sustainability is included in the KPIs for sustainability assets and gender diversity in the sub-top, while for the Executive Board it is included in the KPIs for sustainability (Dow Jones Sustainability Index, or DJSI) and diversity. Sustainability is part of the strategy. Non-Identified Staff are requested to set objectives in line with the strategy.