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Board of Directors

Chairman

Pablo Granifo Lavín

Was re-elected as the chairman of our board of directors in 2017, a position which he has held since 2007. He was our chief executive officer from 2001 to 2007 [...]

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Vice Chairman

Andrónico Luksic Craig

Has been a director and the vice chairman of our board of directors since 2002 [...]

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Álvaro Jaramillo Escallon

Mr. Álvaro Jaramillo was appointed member of our Board of Directors on January 25, 2018. He is Citi Country Officer [...]

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Directors

Jean Paul Luksic Fontbona

Was appointed member of our board of directors in April 2013 [...]

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Francisco Pérez Mackenna

Has been a member of our board of directors since 2001 and was re-elected [...]

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Gonzalo Menéndez Duque

Has been a member of our board of directors since 2001 and was re-elected [...]

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Jaime Estévez Valencia

Has been a member of our board of directors since 2007 and was re-elected [...]

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Alfredo Ergas Segal

Has been a member of our board of directors since March 2017. Mr. Ergas is [...]

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Samuel Libnic

Was appointed member of our board of directors on 2015 and [...]

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Julio Figueroa

Mr. Julio Figueroa was appointed as member of our Board of Directors on December 27th, 2018. [...]

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Andrés Ergas Heymann

Was appointed member of our board of directors on 2017. Previously, he [...]

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Alternate Directors

Rodrigo Manubens

Has been a member of our board of directors since 2001 and [...]

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Tomas Fürst Freiwirth

Has been a member of our board of directors since 2004 and was [...]

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Board Adviser

Hernán Büchi Buc

Has served as an advisor to the board since 2008. In 2007, he was [...]

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Board of Directors Committees

The board of directors delegates certain functions and activities to our committees to research, evaluate and report to the board of directors regarding specific matters which may affect our businesses. Our boards of directors committees are:

The Directors/Audit Committee

Prior to March 24, 2005, our directors committee and audit committee were separate committees performing independent functions for the board of directors. On March 24, 2005, the board of directors approved the merger of our directors committee with our audit committee, forming the directors/audit committee. The directors/audit committee’s primary objectives are to seek the efficiency, maintenance, application and functioning of our internal control systems and compliance with applicable rules and procedures governing our business; to identify our business risks; to supervise the activities of Internal Audit, ensuring their independence from management; to serve as an mediator and coordinator of tasks between the internal audit work and our independent auditors; to act as a communication channel between our internal audit team, our independent auditors and our board of directors; and to perform the duties established by article 50 bis of the Chilean Law of Corporations (Ley 18,046 sobre Sociedades Anónimas).

Our directors/audit committee is composed of three members appointed by the board of directors. Two members satisfy the independence requirements of the Chilean law. The budget of the directors/audit committee is approved annually at the ordinary annual shareholders’ meeting. As established in the directors/audit committee’s charter, the chief executive officer, the general counsel and the manager of our Risk Control Division, or their respective deputies, shall also attend the directors/audit committee meetings.

Portfolio Risk Committee

The main function of the portfolio risk committee is to inform our board of directors of changes in the composition and risk of our loan portfolio, and our corresponding global exposure, sector specific exposure or business specific exposure. The portfolio risk committee closely reviews the performance of our principal debtors, past-due loan ratios, past due loan indicators, write offs and allowances for loan losses.

The portfolio risk committee prepares proposals for discussion with, and approval by, our board of directors with respect to credit policies, portfolio evaluation methods and the calculation of allowances for expected loan losses. The portfolio risk committee also performs analysis of the adequacy of allowances, authorizes extraordinary charge offs of loans once recovery attempts have been exhausted and controls the liquidation of assets acquired in lieu of payment.

The portfolio risk committee meets on a monthly basis and is composed of the chairman of our board of directors, two additional members of our board of directors, our chief executive officer, the chief risk officer, the Individual and SMEs Banking Division manager, and the deputy manager of Information Intelligence Risk Area.

Credit Committees

Our governance structure relating to the evaluation process of commercial loans is based on the segments and risks involved. Each credit decision should be made with the participation of committee members with sufficient authority over a particular type of loan.

A member of the Corporate Credit Risk Division is required to approve most credit decisions exceeding UF 6,000. Such decisions are made by different loan committees, the highest of which, in terms of hierarchy, is the board loan committee. The Corporate Credit Risk Division participates independently and autonomously in each committee from our business areas.

The board loan committee meets on a weekly basis and reviews all transactions exceeding UF 750,000. In addition, our board loan committee must review and approve certain transactions set forth in our Politically Exposed Persons (PEPs) Policy. The board loan committee is composed by all the members and advisors of our board of directors, our chief executive officer and the chief risk officer.

For retail banking, we have loan committees that in exceptional cases review individual customers when they do not meet our customer profile policies, payment behavior requirements or maximum financing amounts.

Finance, International and Market Risk Committee

The main function of the finance, international and market risk committee is to analyze the evolution of our financial positions and the market risks (price and liquidity) that these financial positions generated, particularly the control of risks related to internal and regulatory limits and/or warnings. This committee also analyzes international financial exposure and major credit exposures generated by derivative transactions.

The finance, international and market risk committee meets monthly and is composed of the chairman of our board of directors, four other members or advisors of our board of directors, our chief executive officer, the manager of our Corporate and Investment Banking Division, our chief risk officer, our corporate treasurer and the manager of our financial risk area. Committee members conduct analyses and make presentations to the committee regarding certain matters, including:

  • Knowledge of current market risks, which allows forecasting of potential future losses;
  • Review of estimated results of certain financial positions generated in isolation in order to measure the risk return ratio of the treasury businesses, as well as changes in and forecasts of the use of capital based on best estimates of future credit and market risks;
  • Analysis of the liabilities of international financial exposure and major credit exposures generated by derivative transactions; and
  • The design of policies and procedures for setting, controlling and reporting financial position limits and warnings.


Asset Laundering and Financing of Terrorism Prevention Committee

The asset laundering and financing of terrorism prevention committee was set up in April 2006 with the purpose of defining the policies and procedures that would comprise the asset laundering and financing of terrorism prevention system, as well as evaluating compliance and deciding on all matters related to these subjects

This committee includes the chairman of our board of directors, two members of our board of directors, our chief executive officer, and the chief executive officer of Banchile Administradora General de Fondos S.A. The manager of our Risk Control Division, the manager of our Global Compliance Division, our general counsel, the manager of our Operations and Technology Division, and the manager of our asset laundering prevention area may also attend and participate in the meetings as non voting members.

The asset laundering and financing of terrorism prevention committee meets quarterly and has the following functions:

  • To approve the policies and procedures concerning the gathering of information on customers and their activities and the acceptance and monitoring of their accounts, products and operations;
  • To approve policies and procedures concerning unusual transaction detection systems; formal channels of information to senior management; and monitoring, analysis and reporting mechanisms;
  • To approve policies and procedures concerning surveillance methods and relations with correspondent banks;
  • To approve policies and procedures concerning staff selection, training programs and codes of conduct;
  • To approve the policies and procedures concerning asset laundering and terrorism financing prevention;
  • To appoint persons to perform specific functions in accordance with current regulations on the prevention of asset laundering and terrorism financing. This includes special guidelines related to monitoring and controlling transactions associated with PEPs, such as recording and updating information while granting special approval;
  • To analyze the results of the reviews conducted to verify compliance with current policies and procedures;
  • To consider the transactions analyzed and decisions made by the transactions analysis committee;
  • To consider activities developed to train staff in asset laundering and terrorism financing prevention;
  • To consider and approve modifications to procedures proposed by our Global Compliance Division that improve existing controls for the prevention of asset laundering and terrorism financing; and
  • To inform our board of directors of regulatory changes related to the prevention of asset laundering and financing of terrorism. .
Upper Operational Risk Committee

Created in April 2014, the Upper Operational Risk Committee is responsible for (i) identifying the Bank and its subsidiaries’ exposure to operational risk at both an entity and business level; (ii) evaluating our corporate strategy for managing operational risk, information security management system, business continuity and reputational risk; (iii) approving strategies as defined by the Operational Risk Executive Committee in accordance with the Bank’s operational risk policy; (iv) encouraging the establishment of guidelines and directing efforts to properly manage and mitigate operational risk; (v) reporting to the board on the management model and the level of operational risk exposure of the Bank and its subsidiaries and additional mitigation and/or prevention efforts adopted by the Bank; (vi) ensuring compliance with the current regulatory framework and optimizing capital use; (vii) ensuring compliance with the Bank’s operational risk policy; and (viii) ensuring that our strategy and defined plans ensure the solvency of the Bank and its subsidiaries in the long run by avoiding risk contingencies that could jeopardize the continuity of the Bank

This committee is composed by the chairman of our board of directors , two members of our board of directors, our chief executive officer, our general counsel, the manager of our Operational Risk and Control Division, the manager of our Operations and Technology Division, and the manager of our Operational Risk Area.


Leasing Committee

The main function of the Leasing Committee is to review the monthly evolution and results of our Leasing Area by means of a report that consolidates the management of the business divisions of the Bank.

This committee is composed by one or more directors appointed by our board, our chief executive officer and the manager of the Division in charge of the Leasing Area. This committee shall also be attended as permanent non-voting members by the bank´s managers to be appointed by the committee.

Factoring Committee

The Factoring Committee was set up in 2013, after the merger of Banchile Factoring S.A. with us. Its purpose is to analyze the evolution and results of our Factoring Area in terms of volume, prices, margins, provisions and expenses and analyze the factoring product for each business area of the Bank.

This committee is chaired by the chairman of our board of directors, one member of our board of directors, our chief executive officer, the manager of our Large Companies and Real Estate Division, the manager of our Individual and SMEs Banking Division, the manager of the Large Companies (Metropolitan Zone), Factoring and Foreign Trade Area, and the manager of the Factoring Area.

Consumer Finance Division Committee

The main purpose of the Consumer Finance Division Committee is to analyze on a monthly basis the evolution and results of our Consumer Finance Division, its growth, and its strategies to gain new customer segments and maximize the results of the division.

This committee includes the chairman of our board of directors, two members of our board of directors, our chief executive officer, the manager of our Large Companies and Real Estate Division and the manager of our Consumer Finance Division.

Banchile Corredores de Seguros Executive Committee

The main purpose of the Banchile Corredores de Seguros Executive Committee is to analyze the growth and results of our insurance brokerage subsidiary.

This committee is composed of the chairman and one member of our board of directors, our chief executive officer, the manager of our Individual and SMEs Banking Division, the manager of our Consumer Finance Division and the chief executive officer of Banchile Corredores de Seguros Limitada

Compensation

The table below presents the amount of compensation, as established by our shareholders, to the members of our board of directors for the year ended December 31, 2017. These amounts include remuneration for services, fees for attendance at meetings of our board of directors, meetings of committees of our board of directors and meetings of board of directors of our subsidiaries, consulting services and travel expenses.

Name of Director Total
Pablo Granifo Lavín 1.001
Andrónico Luksic Craig 180
Alvaro Jaramillo escallon -
Jane Fraser -
Jorge Awad Mehech 46
Jaime Estévez Valencia 219
Gonzalo Menéndez Duque 201
Francisco Pérez Mackenna 155
Rodrigo Manubens Moltedo 138
Thomas Fürst Freiwirth 112
Jorge Ergas Heymann 39
Jean Paul Luksic Fontbona 69
Alfredo Ergas Segal 112
Andrés Ergas Heymann 104
Juan Enrique Pino Visinteiner -
Samuel Libnic -
Otros directores de filiales 129
Total 2.505
Name of Director Remuneration
Fees for Attending Meetings of our
Board of Directors
Fees for Attending Meetings of Committees of
our Board of Directors and Meetings of the
Board of Directors of our Subsidiaries(1)
(in millions of Ch$)
Consulting Total
Pablo Granifo Lavín 553 (2) 53 395 - 1.001
Andrónico Luksic Craig 172 8 - - 180
Alvaro Jaramillo Escallon - - - - -
Jane Fraser - - - - -
Jorge Awad Mehech 14 6 26 - 46
Gonzalo Menéndez Duque 57 23 113 8 201
Jaime Estévez Valencia 57 28 134 - 219
Rodrigo Manubens Moltedo 57 28 53 - 138
Jorge Ergas Heymann 14 6 19 - 39
Francisco Pérez Mackenna 57 23 75 - 155
Thomas Fürst Freiwirth 57 19 36 - 112
Jean-Paul Luksic Fontbona 57 12 - - 69
Alfredo Ergas Segal 43 20 49 - 112
Andrés Ergas Heymann 43 20 41 - 104
Juan Enrique Pino Visinteiner - - - - -
Samuel Libnic - - - - -
Other subsidiary directors - - 129 - 129
Total 1.181 246 1.070 8 2.505

(1) Includes fees paid to members of the Advisory Committee of Banchile Corredores de Seguros Ltda. of Ch$ 18 million.

(2) Includes a provision of Ch$380 million for an incentive payable subject to the Bank’s profit plan performance

For the year ended December 31, 2017 fees paid for advisory services to the Board of Directors were Ch$ 334 million, while travel and other related expenses amounted to Ch$ 116 million.

None of our directors is a party to any agreement with us or any of our subsidiaries that provides for benefits upon termination of his appointment as a director.