The ICANN Board adopted a New gTLD Funds Investment Policy selecting Bridgebay Investment Consultant Services to assist in the design of a specific investment policy for management the funds held for the New gTLD Program”
Here is the relevant part of Board Resolution.
“ICANN has collected approximately US$355 million of application fees from applicants for generic top-level domains (gTLDs) in the New gTLD Program (net from pre-reveal withdrawals).
“The purpose of these application fees is to cover the costs of implementing the GNSO‘s Policy on new gTLDs through the New gTLD Program.”
“Because of this specific usage of the funds, as well as the specific timeframe associated with such usage, a specific investment policy is called for to support the adequate investment of such funds for the time they will be held.”
“ICANN selected Bridgebay Investment Consultant Services to assist in the design of a specific investment policy for management the funds held for the New gTLD Program. The New gTLD Fund Investment Policy has been designed to enabling safeguarding, liquidity, and a reasonable return on investment during the period of time the funds are invested.”
“The Board Finance Committee reviewed the proposed New gTLD Funds Investment Policy and has met with the advisor, and concluded that the proposed policy does satisfy its stated goals.”
“Accordingly, the Board Finance Committee recommended that the Board approve the proposed New gTLD Funds Investment Policy. The Board agrees with the BFC’s conclusions and recommendation”.
“The New gTLD Funds Investment Policy is expected to have a fiscal impact to the extent that the funds will be earning some return on investment during the period of time that the funds are invested.”
“This is an Organizational Administrative Function not requiring public comment”.
If you could get a return of 5% per year that is over $17 million in profit/interest a year. That is probably more than enough to run ICANN per year. Without registrar fees. (Maybe $8 million a year – on 900 or so active registrars?) Or registrant fees. ($27 million annually – on 150 million domains?) Come to think of it… what a nice situation. If they could hold onto that $355 million, they could operate without having to take on new money every year. Granted I don’t know what running ICANN costs per year. But it should be less than $17 million per year. Then add 1,000 extensions at $20k per TLD a year (?). Add in another $20 million a year. Add in the unknown $50 to $100 million in auction results this year from gTLD contention… Now things are really adding up!
Wow. When is ICANN going public??? I WANT TO INVEST IN IT!!!!
ICANN pays more just in compensation than your suggesting it should cost to run the entire organization
The total budget for 2012 is $67 million in costs
Projected 2013 $74M
How about ICANN cuts off the heads of corrupt affiliates and pseudo-registrars first? And when there is a need for intervention, why do they drag their feet?
That’s your tax money at work.
Fingers crossed over here that they’ll now be able to boost executive compensation. Grossly underpaid.