8. Corporate Governance

For the first time in Royal Avebe's history, we adjusted the price forecast prior to the campaign. While adjusting the price naturally has an impact on confidence, we are convinced it was the right decision. It was a tough decision, in which we opted for openness, transparency and the continuity of the company. The one-off transaction in Turkey, in which we sold our entity there, also strengthened the company. The negative result of this fell in the current financial year, making the impact inevitable for our members.

These two decisions obviously have a direct impact on the performance indicator, but at the same time they also provide a strengthened financial base going forward. The 25 euro growth target for the performance indicator still stands firm.  

Avebe's challenges are not so much in the application of our products, but much more in the supply of our raw materials. Societal discussions play a role here: about crop protection products, climate change, rising costs and crop-related diseases. In the Netherlands, think also of the potential impact of the 8th Nitrates Action Program and, in Germany, of irrigation restrictions. By contrast, our customers see a strong and professional company that puts the customer first. Avebe's Innovation Center, for instance, provides maximum support to our customers by developing solutions to specific customer questions. Our story is also increasingly landing in regional and national politics.

The supervisory board sees that cost savings are being made. Processes have also been and are being organised more efficiently. Employees are aware of costs at an individual level, so targets on budgeted savings have been achieved. Production lines are used more efficiently and effectively and, in addition, internal processes run better, leaders are included in a leadership program and plans with proven results are followed up better.

During the annual meeting, Peter Poortinga was thanked for his valued commitment in recent years and Hidde van der Wal was appointed as a new member. In addition, Johan Emmens was reappointed for two years.  

Angelique Heckman fulfils the role of confidant for the works council. She is ready to offer works council members a safe and independent place to discuss concerns, dilemmas and possible integrity issues. Two meetings were held with a delegation from the supervisory board, the works council and the board of directors.  

As a cooperative of starch potato growers, our members’ council forms the highest body in Royal Avebe. The members have a right of say on important subjects such as the appointment of supervisory directors, the adoption of the financial statements and decisions on subjects laid down in the articles of association. The members’ council also serves as a sounding board 
for the cooperative’s management. The members’ council is composed of members elected by district. The members’ council also has a youth council. The youth council is a breeding ground for administrative talent within the cooperative. The members of this council represent the prospective and young members.

The (cooperative) board of Royal Avebe, consisting of David Fousert (chair and also CEO) and Rob van Laerhoven (member and also CFO), represents the cooperative and implements the decisions.

The board, together with the directors of the departments HR, Agro, Commerce, Innovations and Operations, form the executive committee. The executive committee is responsible for safeguarding the strategy and its tactical and operational aspects and the accompanying policy.

The supervisory board of Avebe consists of nine members, five of whom are members of the cooperative. The supervisory board oversees the management and pursuance of the strategy, the policy of the cooperative and its subsidiaries. The supervisory board is also responsible for the remuneration and appointment of board members (as the board’s employer) and approving 
financial statements and the budgets. The supervisory board members are appointed by the members’ council and it elects a chair from among its members. In addition to its formal role, the supervisory board also provides solicited and unsolicited advice on the strategy to be pursued and the cooperative’s policy.

The cooperative board, the executive committee and the employees involved have defined targets for each strategic pillar. Eleven programs have been developed to give substance to the strategic goals. Various teams, led by the Strategic Business Owners and program managers, have been tasked with carrying out these programs and make investments to achieve the set goals. Within our investment portfolio, a specific pillar has been introduced for sustainability investments. In this way we take advantage of the sustainability opportunities. The program managers manage the projects within the programs and report progress to the executive committee during monthly strategy meetings, at which the sustainability director and PMO 
director are also present. In these meetings, the progress of the various programs is discussed and the necessary decisions taken relating to the organisation’s strategy, including sustainability. The director of sustainability ensures the progress of sustainability targets and reports to the CEO. The executive committee bears final responsibility for the entire strategy and therefore for making Avebe more sustainable.

Our remuneration policy for the board of directors is based on both financial and non-financial performance criteria. The four criteria for the past year place emphasis on critical processes and developments.

1. Performance price, in the short and long term 
2. PerfectaSOL^®, the protein strategy
3. Healthy solvency
4. Development of new strategy

These criteria have been implemented in full among the entire senior management of Avebe, making the success of the strategy a shared challenge.

Avebe believes it is vital to work with a diversity of employees with diverse perspectives arising from different ages, experiences, backgrounds, genders, sexual preference, characters etc. There is room for everyone within our company. We offer every employee equal opportunities to develop talents and strive for an open, safe and inclusive working environment. In order to reflect society at all levels, we encourage the recruitment and retention of a wide diversity of employees.

North

S. Wieringa (chair)
H.F. Bakker
D.D. Bouwman
E.H. Emmens
H.J. Hoiting (vice chair)
C. Kamphuis
K. de Jonge
Mw. J. Smant
H.J. Takens
Mw. A. Groenwold

East

H.G. Begeman (chair)
D.P.J.R. Beuling
W. Dinka
J.E.B. Drent
J. Koop
J.R. Kunst¹
G.H.M. Manning (vice chair)³
J. Nieboer Jzn.¹
A. Timmerman⁴
Mw. W. Krabben
N. Naber²
K. Bruining²

Central

J.A. Daling (chair)
A. de Boer
W. van Dalen
H. van der Horst
R.H. Kunst
R. Otten
H.J. Prins¹
B.F.J.M. van der Sterren (vice chair)
H. Strating
A.R. Polling
A. Sijbring⁵

South

R. Kuper (chair)
B. van Dijk (vice chair)
J. Bartelds
B. Michel¹
A.J. van Roekel
E. Snijders
E.H.M. Schwieters
J. Karstenberg
H. Grotenhuis
M.A. Kruizenga
M. Nijkamp²

KPW

F. Schröder (chair)
O. Glühe⁶
H. Geldermann
B. Kaufmann (vice chair)
J. Meyer
C. Basedau¹
H. Milatz
J. Keil
M. Hennings
H. Küper²
J-W. Schorling⁵

Weser-Ems

B. Specken (chair)³
C. Kaiser (vice chair/chair)⁴
J. Kruse
J. Langeborg
G. Lehmkuhl
L. Pott¹
R. van Werde
M. Krüssel²
N. Schmitz²

Youth council

North

M.J.J. Berg (chair)
R. Jager
A. Vegter¹
J. Kuiper²