Executive compensation and employee benefits—Chile—Q&A guide

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • Executive compensation and employee benefits—Chile—Q&A guide
  • 1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.
  • 2. What are the primary government agencies or other entities responsible for enforcing these rules?
  • 3. Are any types of compensation or benefits generally subject to specific corporate governance requirements or approval by shareholders or government agencies? What is the general process for obtaining approval?
  • 4. Under what circumstances does the establishment or change of an executive compensation or benefit arrangement generally require consultation with a union, works council or similar body?
  • 5. Are any types of compensation or benefit arrangements prohibited either generally or with respect to senior management?
  • 6. What rules apply to compensation and benefits of non-executive directors?
  • 7. Must any aspects of an executive’s compensation be publicly disclosed or disclosed to the government? How?
  • 8. Are employment agreements required or prevalent? If so, what provisions are common? Are any terms prohibited or unenforceable?
  • 9. What are the prevalent types and structures of incentive compensation? Do they vary by level or type of organisation?
  • More...

Executive compensation and employee benefits—Chile—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to executive compensation and employee benefits in Chile published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Porzio Ríos García—Ignacio García; Fernando Villalobos

1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.

The Chilean Labour Code provides the regulation at a national level on matters such as minimum salary, enforceable conditions and frequency of payment. Decisions rendered by the Supreme Court and the Labour Inspection have a relevant use as a source of interpretation of the statutes. Corporations Act No. 18,046 and Securities and Exchange Act No. 18,045 provide a framework for compensation paid by corporations and entities, subject to the supervision of the Securities and Exchange Supervisory Authority.

2. What are the primary government agencies or other entities responsible for enforcing these rules?

The primary government agencies responsible for enforcing these rules are the Labour and Employment Inspection, the Courts of Justice and the Securities and Exchange Supervisory Authority.

3. Are any types of compensation or benefits generally subject to specific corporate governance requirements or approval by shareholders or government agencies? What is the general process for obtaining approval?

For companies other than corporations, there are no statutory requirements or approvals.

For corporations, in

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