Historical Resolution Tracking Feature » 2011-10-28 - Posting of Expert's Report on Board Compensation

Important note: The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.

2011-10-28 - Posting of Expert's Report on Board Compensation

Resolution of the ICANN Board
Topic: 
Board Compensation Expert Report
Summary: 

Board orders public posting of Independent Valuation Expert's Report regarding ATRT Recommendation 5: Board Compensation.

Category: 
Board
Meeting Date: 
Fri, 28 Oct 2011
Resolution Number: 
2011.10.28.13
URL for Resolution: 
http://www.icann.org/en/minutes/resolutions-28oct11-en.htm#1.10
Status: 
Complete
Implementation Actions: 
  • Post Independent Valuation Expert's Report regarding ATRT recommendation to compensate Directors.
    • Responsible entity: ICANN Staff
    • Due date: None provided
    • Completion date: 4 November 2011
Resolution Text: 

Whereas on 25 August 2011, after several years of consideration, including the most recent Accountability and Transparency Review Teams' recommendation to compensate Directors, the Board directed ICANN's General Counsel and Secretary to retain Towers Watson as the Board's Independent Valuation Expert to evaluate and report on the appropriateness of compensation for ICANN's voting Board members.

Whereas, Towers Watson has conducted its evaluation and has determined that compensating the ICANN voting Board members is reasonable.

Whereas, Towers Watson has also recommended a particular level of compensation for ICANN's voting Board members and has presented a Report to ICANN for its consideration.

Whereas, the Board Governance Committee has recommended that the Board post the Independent Valuation Expert's Report.

Whereas, the Board is committed to transparency of the process relating to Board member compensation.

Resolved (2011.10.28.13), the Independent Valuation Expert's Report shall be publicly posted.

Rationale for Resolution: 

Over the past several years, ICANN has been considering issues surrounding Board compensation. The Board has publicly discussed the matter and has reviewed independent analysis and advice on the matter. For example: (i) there were calls from the community in relation to ICANN Framework for Accountability and Transparency that the entire Board be compensated; (ii) budget contingency discussions since FY08 have involved the concept of possible Board remuneration; (iii) independent evaluation experts provided studies on other non-profit organizations and Board member remuneration; (iv) the Boston Consulting Group ("BCG") that conducted the Board Review suggested that relatively modest fees to compensate directors for time may be appropriate; (v) the Board Review working group acknowledged general support from BCG and community for director remuneration, but recommended further study in coordination with General Counsel; and (vi) the Accountability and Transparency Review Team specifically recommended that the Board should implement a compensation scheme for voting Directors.

In August of 2010, the Board approved compensation for the Board Chair. Since that time a call for all voting directors to be compensated has continued, most recently through Recommendation 5 from the Accountability and Transparency Review Team.

On 25 August 2011, the Board began taking the steps necessary to consider compensation for the voting Board members, including posting a revised conflicts of interest policy as well as revised Bylaws that would be required if the Board ultimately approves compensation for voting Board members.

Publicly posting the Independent Valuation Expert Report should have a positive impact on the community as it will provide more transparency into the Board's process Further, informing the community through posting all of the process steps the Board is following, as well as the proposed revisions for the Conflicts of Interest Policy and the Bylaws, significantly enhances ICANN's transparency in this matter.

Following these steps has had a small fiscal impact on ICANN as it did cost some to engage the Independent Valuation Expert, however that eventually was budgeted for when the Board adopted the ATRT Recommendations. Taking these steps, including publishing the Independent Valuation Expert Report, will not negatively affect the security, stability or resiliency of the domain name system.

Other Related Resolutions: 
Additional Information: