Reference Group Composition

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Reference Group To construct the best fitting compensation package for the CEO of ABN Amro it is useful to divide the reference group into three different sub reference groups. The first sub reference group consists of 4 national banks. The second sub reference group consists of four national companies with similar characteristics just as revenue, the second sub reference group enhances the condition that their core business has nothing to do with the banking system. . The third and last reference group consists of four foreign international banks. The choice for dividing the reference group in to three subcategories is that for constructing the best compensation package it is on one hand useful to look at national big companies of whom have nothing to do with the banking system, and on the other hand it is useful to have an insight on the remuneration package of foreign banks. First, we will look at the remuneration package of 4 national banks with comparable size. It is useful to compare these companies since they operate in the same environment and industry. Also they are competitive, so our remuneration package must have resemblances with the other companies or it will demotivate our CEO. For the second sub reference group we will compare ABN AMRO with companies which core business have little to do with the banking system. The scope of the companies are in some ways the same as ABN Amro. This way we can compare remuneration packages of CEO’s that lead companies of equal significance. Again, four companies have been selected for comparison. Each has a comparable attribute which can help us compare and determine the right compensation package for the CEO. Unilever, for example, has an operating income of 6989 million. This makes Unilever a suited candidate for comparison with ABN Amro, because they have an operating income of 7338 million. Another way to

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