Peter Dengate Thrush, the former ICANN chairman who pushed through approval of the new top-level domains program less than a month ago, is to join new gTLD firm Minds + Machines.
He has become executive chairman of Top Level Domain Holdings, M+M’s parent company, which is listed on the Alternative Investment Market.
The hire will undoubtedly boost M+M’s credibility and raise its profile, but is already also raising eyebrows.
TLDH plans to apply to ICANN for potentially dozens of new gTLD contracts next year, both with partners and customers and on its own.
Dengate Thrush has been granted options to buy 15 million TLDH shares for 8p each, roughly the same as its current price, which he can exercise at a rate of 1.25 million per quarter through July 2014.
TLDH currently has no revenue to speak of. Its future share price will depend on its ability to sign registry services customers and win new gTLDs through the ICANN process.
It’s fairly easy to extrapolate scenarios where Dengate Thrush’s compensation package is worth millions.
His chairmanship of ICANN’s board of directors came to an end June 24, just a few days after it voted to approve the new gTLD program.
During that vote, dissenting director Mike Silber accused the board of voting too soon, saying it was being hurried by “ego-driven deadlines”.
This was a reference to Dengate Thrush and fellow new gTLD cheerleader Rita Rodin Johnston, both of whom were due to see their terms on the board expire that week.
Dengate Thrush is the first ICANN chair to take a high-paying domain name industry job following his time with ICANN.
His predecessor, Vint Cerf, joined Google. Earlier, Esther Dyson went on to invest in and work with a number of technology start-ups.
ICANN does not have a policy preventing former employees or directors taking lucrative jobs working for the companies that they were previously essentially regulating.
Indeed, some of its directors currently work for such companies.
Few in the ICANN community doubted that Dengate Thrush, an IP lawyer by trade, would join a new gTLD company. The question was which one.
I asked him, along with CEO Rod Beckstrom and senior VP Kurt Pritz, at a press conference in Singapore, whether they would be prevented from joining a new gTLD firm.
The answer, basically, was: “No.”
ICANN staff and board sign confidentiality agreements that prevent them taking secrets into future employers, but there’s nothing to prevent a “revolving door” between industry and regulator.
GNSO Council chair Stephane Van Gelder of the French registrar Indom suggested in a blog post this morning that ICANN should consider hiring independent directors and barring them from working in the industry for a year after their terms end.
It would be pretty difficult to enforce such a rule on the board as it is currently made up, given that it draws some of its members, by design, from the domain name industry.
ICANN’s new vice chair Bruce Tonkin works for Melbourne IT, a registrar, for example. He recused himself from the new gTLD vote because of this conflict of interest.
It would be silly for ICANN to ban him from working for Melbourne IT after his term expires if he’s allowed to work there during the term itself.
While no rules appear to have been broken, M+M’s new hire may sit uncomfortably with some.
It will certainly reinforce beliefs, where they are held, that the new gTLD program is largely a money-grabbing exercise by the domain industry.