___________________________________________________________________________

2017/PPWE/SEM/008

Board Members’ Composition in State Owned Companies: Recent Chilean Experience

Submitted by: Chile

Seminar on Women As Prime Movers of Inclusive Business

Hue, Viet Nam26 September 2017

2017 APEC Seminar on Women as Prime Movers of Inclusive Business

1

September 2017

Bernardita Escobar Andrae

President of the Board System of State Owned Enterprises - SEP

Board Members’ composition in State Owned Companies. The recent Chilean Experience

System of State Owned Enterprises – SEP 2017

2

Ports Transportaion Services

Arica Iquique Antofagasta Coquimbo Valparaíso San Antonio Talcahuano San Vicente Puerto Montt Chacabuco Austral

Metro de Santiago Rail Road - EFE

Zofri Post Office Lottery Casa Moneda Cotrisa Sasipa Econssa Sacor

3

SEP is the entity that performs the duties of shareholders on Behalf of the Goverment in 20 State Owned Companies under SEP’s rule.

Assets

Revenues

Employees

Board

Members

Over MM US$ 11.000

Over MM US$ 1.100

Near 12.300

90 Board members

20 Board members of Affiliated

Companies

Regional Distribution of SEP Firms’ Employees

4

Firm 1 2 3 4 5 6 7 8 9 10 11 12 R.M. 14 15 TOTAL

E.P. Arica 30 30

E.P. Iquique 41 41

E.P. Antofagasta 36 36

E.P. Coquimbo 13 13

E.P. Valparaíso 70 70

E.P. San Antonio 53 53

E.P. Talcahuano

San Vicente 16 16

E.P. Puerto Montt 34 34

E.P. Chacabuco 18 18

E.P. Austral 54 54

Casa Moneda 315 315

Polla 78 78

Correos 83 202 102 168 508 164 190 544 193 242 34 71 3,264 90 51 5,906

ZOFRI 272 3 5 280

ECONSSA 16 16

COTRISA 5 4 4 16 29

SASIPA 75 (*) 1 76

Metro 3,706 3,706

EFE 291 15 24 359 77 5 765 20 1,556

Total 396 238 102 181 997 179 219 923 274 281 52 125 8,164 90 106 12,327

Profits before Taxes

5

-50,000

-

50,000

100,000

150,000

200,000

250,000

2009 2010 2011 2012 2013 2014 2015 2016

E.P. ARICA E.P. IQUIQUE EBITDA E.P. ANTOFAGASTA EBITDA

E.P. COQUIMBO E.P. VALPARAÍSO E.P. SAN ANTONIO

E.P. TALCAHUANO - SAN VICENTE E.P. PUERTO MONTT E.P. CHACABUCO

E.P. AUSTRAL METRO EFE

CORREOS ZOFRI POLLA

CASA MONEDA COTRISA SASIPA

ECONSSA SUBTOTAL OTRAS EMPRESAS

1997 2001

SAE, Enterprise

Administration System is

born

CORFO delegates on SAE

the supervision of its

companies

Board of 5 Members

SAE in charge of 20

Companies (Metro, Zofri,

Cotrisa, Polla, Enacar,

Sasipa, Sacor y 13 Sanitary

companies)

Until 1997 CORFO

Exercised its owner

rights directly over its

companies

CORFO devoted

resources to promote

economic development

and behave as

shareholder.

Year

Creation SAE Creation SEP

SEP’s Institutional Evolution

2017

6

SEP is born

State Owned Companies are

added to its supervision.

Additional 4 Board Members

New Comapnies added to the

System: 10 Ports, EFE, Mail

Emaza (inicially also ENAMI)

Forthcoming

SEP New

law

Entry and Exit of State Owned Companies (SOEs) to the SEP System

7

FirmYear

FoundationSEP entrance SEP Exit

EP ARICA 1998 2002 vigente

EP IQUIQUE 1998 2002 vigente

EP ANTOFAGASTA 1998 2002 vigente

EP COQUIMBO 1998 2002 vigente

EP VALPARAÍSO 1998 2002 vigente

EP SAN ANTONIO 1998 2002 vigente

EP THNO SVTE 1998 2002 vigente

EP PTO. MONTT 1998 2002 vigente

EP CHACABUCO 1998 2002 vigente

EP AUSTRAL 1998 2002 vigente

EFE 1884 2002 vigente

METRO 1968 1997 vigente

CASA DE MONEDA 2009 2009 vigente

CORREOS 1852 2002 vigente

POLLA 1934 1997 vigente

COTRISA 1986 1997 vigente

ZOFRI 1975 1997 vigente

SASIPA 1980 1997 vigente

ENACAR 1852 1997 2017

FirmYear

Foundation

SEP

entranceSEP Exit

EMAZA 1960 1997 2010

ESSAN (ECONSSA)1990 1997 vigente

ESSAT 1990 1997 2004

EMSSAT 1990 1997 2004

ESSCO 1990 1997 2004

ESSAM 1990 1997 2001

ESSAR 1990 1997 2004

EMSSA 1990 1997 2003

ESMAG 1990 1997 2004

LAGO PEÑUELAS 1998 1998 2015

ESSVAL 1990 1997 1999

EMOS (A. Andinas)1990 1997 2000

ESSEL 1990 1997 2000

ESSAL 1990 1997 1999

ESSBIO 1990 1997 2001

Duties Exercised by SEP as Holding of SOEs

8

1. Perform duties of Shareholder by delegation (CORFO, MTT, Ministry of

Finance- MF-):

i. Attend General Shareholder Meetings

ii. Nominate Board Members (90 posts + 20 suggestions of related

companies).

iii. Dictate instructions together with MF related to Financial matters

(ej. Austerity, ceilings to spending, and commitment in negotiations

with employees , etc. )

iv. Validation of Strategic Planning and Firms Master plans

v. Establish annual performance Goals (CD, Goals, PGA)

vi. Evaluate Board members performance.

2. Performance Control of firms with debt guaranteed by the Government

(SEP firms -Metro, EFE and non- SEP firms- ENAER) (2002)

3. Dictate and revise best corporate government practices (2010)

i) Represent SOEs before OECD corresponding body

Funciones Sistema de Empresas Públicas- SEP. Holding de Empresas Públicas

9

4. Report & Transparency.

i. Prepare annual reports of SEP firms for the President and

Congress.

ii. Prepare periodical financial reports for the President and

Congress Commissions

5. Technical economic evaluation of some Firms’ investments

Voluntary Quotas on gender diversity in Boards of SEP SOEs

10

• The new 2014 Goverment had commited in its govermnet

Programme to expand the participation of women in Boards of SEP

companies to achieve a 40% level by the end of the government

mandate (march 2018)

• Since the new administration took office, and the new SEP Council

was established, continuos efforts were made to achieve promptly

the goal.

• The statrting point was the lowest since women were appointend as

Board members in the SEP era (as low as 5%)

• By the end of 2014 women in Bords achived over 28%

• By April 2017, Women represented 42% of the board members.

Best Practices in State Owned Companies. Achievements in gender diversity in Board members Composition

11

Diversity de la Diversidad (género) en Consejo SEP

12

Final Remarks

• It is an integral part of the duties of SEP’s Council to actively seek for a balanced composition of Board members in all dimensions, from areas of competences and excellence to gender diversity.

• The idea that women have not been willing to undertake responsabilities to run SOEs is not accurate, or largely incorrect.

• There is a large pool of women who have the proffessional profile to undertake the challenge to be in the Board in their full right.

• Voluntary quotas can become a useful policy to overcome hurdles to rightlfully appoint women in Board of SOEs.

• In doing so, the pool of women that may potentially fulfill other high managment positions is enlarged.

• But voluntary quotas may be a fragile tool if commitment to appoint women in SOEs Boards across administrations is uneven.

13

9 al 11 de Mayo, 2017 Gobierno de Chile | Sistema de Empresas SEP 14

Thank you!!!