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<p class="MsoNormal">All,</p>
<p class="MsoNormal"><br>
</p>
<p class="MsoNormal">I would like to highlight several things that
Anne has
mentioned. We are of course all in support of accountability,
minimizing the risk of disputes
in the management of the auction proceeds, and support that
costs should be
managed prudently. Those apply to whatever Mechanism is finally
selected.</p>
<p class="MsoNormal"><br>
</p>
<p class="MsoNormal">As for the “many trade-offs” as between
Mechanisms A, B, and
C, those that raise or lower the desirability of individual
Mechanisms are pretty
much independent of how we sort out the accountability and risk
management issues.
The Mechanism properties and the associated “trade-offs” are
likely to be thoroughly
aired in the public comment period for the Final Report. Bits
and pieces of
those trade-offs have been raised in the work of the group, but
now, in the
comment period, is the time to get more specific and explicit
about the
strengths and weaknesses of the three options. <br>
</p>
<p class="MsoNormal"><br>
</p>
<p class="MsoNormal">Sam Lanfranco <br>
</p>
</p>
<div class="moz-cite-prefix">On 11/19/2019 7:24 PM, Aikman-Scalese,
Anne wrote:<br>
</div>
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<p class="MsoNormal"><span style="color:#1F497D">Hi Alan. I
apologize - the 3/4 vote required to amend Fundamental
ByLaws is for 3/4 of the Board of Directors. The approval
of the EC is listed in Annex D to the ByLaws and apparently
requires approval of three EC Decisional Participants as
well as the condition that the ByLaws amendment is “(B) not
objected to by more than one Decisional Participant.”
Annex D Section 1.4 (b) (i). So if two Decisional
Participants object, we are back to “square one” as you
say. And that makes the survey very important.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">To clarify, I
don’t think anyone is trying to escape Accountability.
Everyone agrees that grants shouldn’t be subject to being
revoked and that ICANN should minimize the risk of adverse
action (disputes) in relation to its management of Auction
Proceeds. Everyone also agrees that costs should be
managed prudently.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">You may think
that keeping grant-making inside the ICANN organization is
equally safe in the above respects for ICANN, its Board of
Directors, and all grant recipients. ALAC may want to
support Mechanism A if, in fact, it is the lowest initial
investment, for that reason alone. However, I don’t think
the Proposed Final Report makes it clear which is the lowest
cost alternative in the long run. 20 new ICANN employees
with benefits would be expensive and I would assume they
would have to be compensated from Auction Proceeds monies.
It’s likely easier to “Sunset” Mechanism B so you don’t have
to fire 20 people. Mechanism C would provide incentives for
other organizations and foundations to make additional
contributions to an ICANN charitable foundation so there are
many trade-offs. I’m sure the CCWG must have discussed these
trade-offs over many sessions.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">The risk
management issue doesn’t seem nearly as obvious to me as it
does to you, but many thanks for engaging in the discussion
in a way that helps us all clarify the considerations in
advance of issuing the Proposed Initial Report and
conducting the survey.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Anne<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
</div>
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