[Comments-reserve-fund-replenishment-06mar18] ICANN Reserve Fund: Proposed Replenishment Strategy - ICANN must STAFF ASAP

[Don Smith]

 ICANN needs to be held accountable, just like any other corporation in the world (corporate or non-profit.)
ICANN is now in a budget crunch because of its own mistakes with the gTLD program and other lavish spending.  Specifically, ICANN massively scaled up its headcount to support the new gTLD program.  However, the new gTLD program severely unperformed projected volumes based on ICANN’s own internal budget and ICANN still continues to under estimate the future revenues from the gTLD program.
The ICANN finance team, led by CFO Xavier Calvez massively under budgeted expected revenues from the gTLD program.  ICANN scaled up staff based on these projections.  And the CFO needs to be held accountable for this enormous budgeting mistake.  (can you think of this happening with any public company in the US?  The board would have terminated senior management a LONG time ago.)
Why is there no accountability for the office of the CEO and CFO?  Also worth noting Xavier currently makes $373,561 per year not considering the extremely generous 401k plan (which requires no employee match.)
The ONLY way to remedy this situation is fix what caused it.   ICANN must cut staff and they must do this ASAP.  Cut deep and aggressive. Consider this:  by cutting headcount by 20%, 30% or even by 40% - it will have absolutely no bearing on ICANN’s revenues.  ICANN will still continue to receive the same amount of revenue regardless if it is a tightly controlled / elite team of professionals or if continues to be the super over bloated organization they are today.  Yes, ICANN can always hire more staff in the future…..but time has come to cut deep!

This will be Göran Marby’s big test to see if he will do the right thing.  Cutting staff is not an easy decision – but it MUST be done to ensure ICANN has a future.It is extremely difficult to cut staff and lay off employees – but this is the only want to fix this mess.  You have to reverse what got ICANN into this situation in the first place  - because if you don’t address this problem head on and look for money elsewhere, we will be back in the very same situation a few years down the road. 
We like to enter in the following blog postings for the record:
ICANN’s budget mess: the expenses:https://domainnamewire.com/2018/04/09/icanns-budget-mess-the-expenses/
ICANN’s budget crunch: headcount growth:https://domainnamewire.com/2018/03/28/icanns-budget-crunch-headcount-growth/
My thoughts on ICANN’s budget crisis:https://domainnamewire.com/2018/04/10/my-thoughts-on-icanns-budget-crisis/
Let’s all have a nosey at how much ICANN staff get paid:http://domainincite.com/21760-lets-all-have-a-nosey-at-how-much-icann-staff-get-paid
ICANN must reduce its budget now!https://onlinedomain.com/2018/03/21/domain-name-news/icann-must-reduce-its-budget-now/
ICANN slashes new TLD forecast, but is it enough? (this was back in 2014):https://domainnamewire.com/2014/10/21/icann-slashes-new-tld-forecast-but-is-it-enough/
ICANN Uses For-Profit Companies as "Comparables" in Its Employee Compensation:http://www.circleid.com/posts/20090105_icann_for_profit_companies_comparables/
NonProfit? ICANN Releases Salaries: Beckstrom Over $2.2 Million Guaranteed; CFO $270K Per, Lawyer $230K Per PLUS PLUS:https://www.thedomains.com/2010/02/11/nonprofit-icann-releases-salaries-beckstrom-over-2-2-million-guaranteed-cfo-270k-lawyer-230k-plus-plus/
18 ICANN employees make $250k+:https://domainnamewire.com/2016/05/16/icann-salaries/
Community calls on ICANN to cut staff spending:http://domainincite.com/22680-community-calls-on-icann-to-cut-staff-spending
Should ICANN cut free travel, or its own staff?http://domainincite.com/22622-should-icann-cut-free-travel-or-its-own-staff
ICANN, with $143 million budget, running out of cash:http://domainincite.com/22407-icann-with-143-million-budget-running-out-of-cash
The new gTLD industry is performing terribly when compared to ICANN’s predictions just six months ago:http://domainincite.com/22566-new-gtld-revenue-cut-by-half-in-icann-budget

Anybody at ICANN listening?
Sincerely,Don Smith


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