Aligned remuneration policies

The remuneration policies attach equal importance to investment and risk functions, by ensuring similar salary scale levels for both functions and avoiding bonus structures that incentivize excessive risk-taking. As a purpose-driven organization, FMO does not offer identified staff (senior management and staff whose professional activities have a material impact on FMO’s risk profile) any form of variable remuneration, such as bonuses. Our results are mainly based on team effort, innovation, knowledge-sharing and collaboration between colleagues in different disciplines, which does not align well with offering substantial bonuses for individual performance.

FMO’s remuneration policy for the Management Board aims to attract, motivate and retain capable people with sufficient knowledge and experience in international development finance. The remuneration policy is aligned with the mission of FMO, our corporate values, our strategy and our risk appetite, as well as the expectations of various stakeholders. The remuneration policy does not incentivize directors to act in their self-interest or to take risks that do not fit with FMO’s Risk Appetite Framework (RAF). Furthermore, the policy does not reward failing Management Board members for such behavior after they have been discharged. The remuneration policy is based on a market median, composed of two equal proportions of a private benchmark (Dutch financial sector) and a public benchmark, considering financial sector remuneration regulation and principles applied by the Dutch government as majority shareholder of FMO.

Employment contracts of members of the Management Board are awarded for a definite period (except for internal appointments). In the event of the employment contract being terminated before the expiry date, the maximum severance payment will amount to one year’s salary, unless the Management Board member resigns voluntarily, or the termination is the result of his or her actions.

The remuneration policy for the Management Board is reviewed every three to four years and amendments are subject to approval at the AGM. During the April 2024 AGM, no amendments to the remuneration policy were proposed or approved.

More details on the remuneration of the Supervisory Board, Management Board and other (identified) staff members can be found on FMO’s website. Aspects of Management Board members' remuneration are also disclosed in the paragraph 'Related party information' in the 'Consolidated Financial Statements'.

The ratio between the remuneration of our CEO (the highest-paid individual) and the median of all other colleagues (including the other Management Board members) per 31 December 2024 was 0.29 (2023: 0.28). This means that the CEO receives a total fixed remuneration of 3.5 times the median of the fixed income paid to the rest of the total staff population, which in comparison with the Dutch financial sector is relatively low.