SOA Board receives update from Nominations Process Task Force; Adopts recommendations

In an effort to review the Society of Actuaries’ nominations process and assess the need for any revisions to its process, an SOA Nominations Process Task Force was formed in late 2011. The Task Force was specifically charged with considering the current process for determining which nominees are placed on the election ballot, whether the process should allow nominees to be placed on the ballot by other means, and providing other recommendations to the SOA Board of Directors.

At its March 2012 meeting, the Board of Directors reviewed the work of the Nominations Process Task Force and adopted the following recommendations.

1. The Task Force recommended continuing the Nominating Committee’s role in selecting all candidates for the election ballot.

   Under this process, the Nominating Committee reviews all nominees for office and selects those best suited to serve the current and future needs of the SOA. Nominees are selected based on the skills and experience needed on the Board, the issues facing the profession, the strategic initiatives of the organization, and the policies and priorities of the Board. Upon Board approval, those selected become the candidates for election and are placed on the ballot for election by the voting members.

   The role of the Nominating Committee was put in place following a comprehensive governance study in 2004-2005. The Task Force re-affirmed that the current process conforms to good governance practice and is well-designed to identify a slate of candidates with skills and competencies needed on the SOA Board of Directors. The Task Force believed that allowing nominees to be placed on the ballot by other means – bypassing the Nominating Committee’s role – would run the risk of undermining this goal. The Task Force strongly believes that the Nominating Committee has been performing its function fairly and effectively, and does a very good job evaluating nominees even-handedly and in good faith, based on criteria that are relevant to their prospective roles on the Board.

   In performing its work, the Task Force conferred almost weekly over 16 weeks. It reviewed information from the 2004-05 Task Force on Nominations and Elections to understand the rationale and philosophy behind the current approach to nominations. It investigated how other professional bodies conduct their nominations and elections, taking into consideration the experience of organizations that have used a petition process, and found significant variation in processes among organizations.

   The Task Force also solicited and reviewed feedback from members. The SOA asked members – via LinkedIn discussions, the SOA blog and email – to comment on the nominations process and to express their views on the need for change. The Task Force received only 23 responses, both for and against change in the current process. Although a majority of those who wrote favored some form of access to the ballot by petition, the small number of respondents advocating such a change did not represent to the Task Force a widespread dissatisfaction with the current process.

Having reached its recommendation with respect to the responsibility for determining the election ballot, the Task Force addressed other aspects of the nominations process, which led to additional recommendations.

2. The Task Force recommended requiring departing Nominating Committee members to wait out one election cycle before becoming eligible to be considered for the ballot.
3. The Task Force recommended providing the membership with additional insight into the Nominating Committee process.

Members will be informed of the types of questions asked on the election questionnaire, which covers nominees’ experience, strategic thinking, and core competencies. Members will also be informed of the initial interview question posed to nominees by the Nominating Committee for use in its ballot deliberations.

4. The Task Force recommended that the Nominating Committee provide feedback, when requested, to nominees who were not selected for the ballot.

Nominees who are not selected for the ballot and wish to receive feedback will be provided such feedback regarding skills, experience, strategic thinking and communication at their request, and without violating confidentiality.

Based on the Task Force’s recommendations concerning the composition of the Nominating Committee, the SOA will conduct an open call for Fellows to serve on the Nominating Committee. The SOA will also appoint no more than one outgoing Board member per year to the Nominating Committee.

The Board has directed the Leadership Development Committee, Nominating Committee and SOA staff to develop and propose changes in existing policies and practices to implement these recommendations.

The SOA will share additional information about these changes as they are implemented. Members with questions about these recommendations can contact membercomms@soa.org.