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ICANN spills beans on Marby’s million-dollar payday

Kevin Murphy, August 17, 2021, Domain Policy

ICANN appears to have increased its transparency when it comes to executive pay, at least when it comes to the CEO.

Göran Marby was revealed earlier this year to have banked more than $1 million in ICANN’s fiscal 2020, and he received another 5% boost at a board meeting this February.

Six months later, the board of directors has finally approved the minutes of that meeting, and for the first time it actually minutes the meeting, revealing the contents of the discussion and the names of the three dissenting directors.

In the past, minutes of decisions involving pay typically just restate the resolution and rationale with no additional context. They don’t usually even reveal the vote tally.

According to the minutes, there was some debate about the method used to determine how much Marby should be paid.

ICANN’s longstanding policy has to offer executive pay within the “50% and 75% percentile of comparable position salaries” in the general for-profit industries, high-tech industry, and non-profits.

What often bothers ICANN watchers, and bothered some directors in February, is how these three comparable industries are mixed and weighted when figuring out how much an ICANN employee is worth.

If high-tech is given more weight, that would pull in the direction of a higher salary. If non-profits were weighted more, that would pull in the opposite direction.

According to the minutes, Avri Doria raised this issue in February, suggesting that non-profit salaries should be more influential in the mix, when future CEOs are selected.

Chair Maarten Botterman said in the minutes that the blend of comparisons doesn’t really matter all that much because Marby’s compensation is “well below” the percentile threshold ICANN has set itself, regardless of the mix.

The discussion continued:

Nigel Roberts noted that looking at sectors other than non-profit is important because while ICANN might not be a big commercial company, it is certainly in competition with those companies for executive leadership candidates and that he believes ICANN needs to compensate well because of that. Becky Burr similarly noted that it is important to understand from where ICANN is drawing its leadership so that the compensation can be competitive, while also acknowledging that the compensation level under discussion is below the target range.

The problem with these arguments is that Marby was not hired from any of the three sectors ICANN uses for comparison.

While he has a background in tech, he was a telecoms regulator on a government salary in Sweden when he applied for the ICANN gig. He’s being paid more than his predecessors who did come directly from high-tech.

The minutes go on to note that director Ihab Osman pointed out that Marby gets paid more than the secretary-general of the United Nations and the CEO of the American Red Cross.

He wondered aloud whether the skill set of an ICANN CEO is the same as a high-tech CEO, while director Mandla Msimang questioned whether ICANN’s revenue should play a factor in setting compensation.

Osman also noted the potentially poor optics of giving Marby a big pay rise in the midst of a pandemic.

When it came to a vote, Doria, Osman and Msimang all voted against the 5% pay increase, but the remaining 11 directors voted in favor. Marby and Ron Da Silva were not present for the discussion.