101 Remuneration Report Global Remuneration Principles  Role of Risk Management and Compliance The GRF includes separate remuneration policies for three groups  of employees, which addresses the fact that these employees’  roles and responsibilities require specific risk mitigating measures  and governance processes. These remuneration policies are for:  (i) the Executive Board; (ii) material risk takers (Identified Staff);  and (iii) Control Staff. Given the rationale for having a separate  policy for material risk takers and the risk mitigating measures  that are applied to the remuneration of these individuals,  Risk Management is involved in deciding which positions are  qualified as Identified Staff. Furthermore, where exceptions to  the policies are made to reflect local practices or regulations,  Risk Management and Compliance are involved to ensure such  exceptions do not undermine effective risk management and  sufficient mitigating measures are undertaken. Since 2011, in  conjunction with Risk Management and Compliance, existing  remuneration policies have been amended, including deferral and  holding arrangements, payment in non-cash instruments, and  specific ex-ante and ex-post measures. The above key pillars have been documented in Aegon’s Global  Remuneration Framework (GRF). The GRF, which covers all staff  of the Aegon Group, contains the guiding principles to support  sound and effective remuneration policies and practices by  ensuring consistency in remuneration policies and practices  throughout the Aegon Group. The GRF is designed in accordance  It is recognized that variable compensation may have an impact  on risk-taking behaviors and, as such, may undermine effective  risk management. This can lead to excessive risk taking, which  can materially impact financial soundness. To avoid such  unwarranted effects, both the Risk Management and Compliance  functions are involved in the design and execution of the  remuneration policies and practices. Aegon’s Remuneration Policies are derived from the GRF,  among which is the Remuneration Policy for the Executive  Board. The policies define specific terms and conditions for the  employment of various groups of staff. In addition, all steps  in the remuneration process, as well as the involvement of  Human Resources, Risk, Compliance and Audit, are governed  by the GRF and its underlying policies. with relevant rules, guidelines and interpretations. Of these, the  2010 Guidelines on Remuneration Policies and Practices by the  Committee of European Banking Supervisors, CEBS – now the  European Banking Authority (EBA) – and the Decree on Sound  Remuneration Policy (Regeling beheerst beloningsbeleid  WfT 2011 - Rbb) by the Dutch Central Bank (DNB) are prominent  examples. The Aegon Group Global Remuneration Principles provide the foundation for  remuneration policies and practices throughout the Aegon Group. They are applied  regionally and/or locally.  The key pillars of the Aegon Group Global Remuneration  Principles are as follows: ■ Aegon remuneration is risk-prudent by: aligning business  objectives with risk management requirements in the target  setting practices throughout Aegon Group; giving an incentive  to appropriate risk-taking behavior while discouraging the  taking of excessive risks; protecting the risk alignment effects  imbedded in the remuneration arrangements of individual staff  against any personal strategies or insurance to counter them.  ■ Aegon remuneration is fairness-driven by: promoting fairness  and consistency in Aegon’s remuneration policies and practices,  with balanced proportions in the remuneration packages,  across the different echelons within Aegon Group and regional  units (internally equitable); avoiding, among others, any  discrimination based on nationality, race, gender, religion, sexual  orientation, and/or cultural beliefs in Aegon’s remuneration  structures (internally equitable); creating global alignment in  the total compensation of all ‘Identified Staff’ (internally  equitable); aiming at controlled market competitive remuneration,  by providing for total compensation packages in comparison  with an appropriately established peer group at regional unit,  country and/or functional level (externally equitable);  ■ Aegon remuneration is performance-related by: establishing  a clear link between pay and performance by aligning adequate  objectives and target setting with performance evaluation and  remuneration; reflecting individual as well as collective  performance in line with the long-term interests of Aegon;  enhancing the transparency and simplicity of Aegon Group  remuneration, consistent with the principle of ‘pay for  performance’; avoiding any ‘pay-for-non-performance’;  ■ Aegon remuneration is employee-oriented by: fostering  a sense of value and appreciation in each individual employee;  promoting the shorter- and longer-term interests and well- being of all Aegon staff via adequate compensation, pension  and/or other benefits; supporting the career development of  its employees; supporting (international) mobility of its staff; 