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<div class=Section1>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'>Mr. Olsen:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'>I hope you will change
your vote to Yes on this motion.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'>It is reasonable and
usual for Compensation Committees to determine salary levels and bonus
structures for key employees.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'> <a
href="http://www.nolo.com/legal-encyclopedia/nonprofit-board-committees.html">http://www.nolo.com/legal-encyclopedia/nonprofit-board-committees.html</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'><o:p> </o:p></span></font></p>
<h1><b><font size=6 face="Times New Roman"><span style='font-size:24.0pt'>“Nonprofit
Board Committees<o:p></o:p></span></font></b></h1>
<p class=MsoNormal><strong><b><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Compensation committee:</span></font></b></strong> The
compensation committee’s function is to determine how much directors, officers,
and key employees of the nonprofit should be paid. To avoid any claims by the
IRS or others that compensation is excessive, the compensation committee should
research what other nonprofits pay for similar positions and document how it
makes it decisions.”<o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Verdana><span style='font-size:10.0pt;
font-family:Verdana'> Scott Lieberman</span></font><font size=2 color=black
face=Verdana><span style='font-size:10.0pt;font-family:Verdana;color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:black'><o:p> </o:p></span></font></p>
<div>
<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center tabindex=-1>
</span></font></div>
<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> Lnc-business
[mailto:lnc-business-bounces@hq.lp.org] <b><span style='font-weight:bold'>On
Behalf Of </span></b>Norm Olsen<br>
<b><span style='font-weight:bold'>Sent:</span></b> Friday, October 23, 2015
3:12 PM<br>
<b><span style='font-weight:bold'>To:</span></b> lnc-business@hq.lp.org<br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [Lnc-business]
seeking cosponsors for EPCC and ContractReview motion</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>I will be voting
against this motion.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>My experience over
the last 5+ years convinces me that the problem addressed is a real one; an
issue that needs to be addressed and I am in favor of addressing it. I am
not in favor of the currently proposed solution. There are just too many
hurdles, deadlines, and areas of confusion as to who can do what and when it
can/must be done. The Chair and prospective employee should be able to
make a deal and feel confident that it is done; rather than live in limbo for
weeks. If one side has the ability to walk away from the deal, the other
side has an equal opportunity.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>May I suggest that
we look for solutions involving actions prior to the start of
negotiations. That is, before the need for negotiations arises, this committee
should have already established some basic guidelines as to what is acceptable
in a contract and what is not. This guideline (or perhaps boilerplate)
would, of course, have the blessing of counsel and the EPCC prior to ever being
used in a negotiation, and the Chair could/would be explicitly instructed,
generally, as to what kind of modifications are acceptable and those which are
not.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>In the contracts
which have caused this issue to become a matter of concern, the problem areas
where no so much the numbers involved (i.e. the “how much” part), but ambiguous
language as to when certain criteria are met and when they are not (severance
pay, moving expenses, bonuses, etc). I believe the suggestion given above
applies to these sorts of things, and leaves the Chair the flexibility of
negotiating the “how much” part, which will always be limited to a certain
degree by budgetary constraints.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Norm<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>-- <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Norman T Olsen<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Regional
Representative, Region 1<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Libertarian National
Committee<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>7931 South Broadway,
PMB 102<o:p></o:p></span></font></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
color="#1f497d" face=Calibri><span style='font-size:11.0pt;font-family:Calibri;
color:#1F497D'>Littleton</span></font></st1:City><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>,
<st1:State w:st="on">CO</st1:State> <st1:PostalCode w:st="on">80122-2710</st1:PostalCode></span></font></st1:place><font
size=2 color="#1f497d" face=Calibri><span style='font-size:11.0pt;font-family:
Calibri;color:#1F497D'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>303-263-4995<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> Lnc-business
[mailto:lnc-business-bounces@hq.lp.org] <b><span style='font-weight:bold'>On
Behalf Of </span></b>Alicia Mattson<br>
<b><span style='font-weight:bold'>Sent:</span></b> Sunday, October 18, 2015
9:30 PM<br>
<b><span style='font-weight:bold'>To:</span></b> lnc-business<br>
<b><span style='font-weight:bold'>Subject:</span></b> [Lnc-business] seeking
cosponsors for EPCC and Contract Review motion<o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<div>
<div>
<div>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Many of you may recall
that in the last LNC meeting, I made a motion to modify the EPCC's role in
director-level contract review. It received a majority vote, but due to
several abstentions, the vote wasn't sufficient to adopt it without having
given previous notice.<o:p></o:p></span></font></p>
</div>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Based on good feedback
during and after the meeting, I've made some additional changes to the
proposal, and at this time I'm asking for co-sponsors for the attached motion.<o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Our current policy has a number of defects:<o:p></o:p></span></font></p>
<ul type=disc>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l1 level1 lfo3'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>It requires that a proposed director-level
employment contract must be reviewed by the EPCC, but it doesn't say that
any EPCC objections or concerns have to be fixed. In theory a chair
could say, "They reviewed it and didn't like it, but I don't have to
listen to them, so I signed it."<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l1 level1 lfo3'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Our policy requires that the contract be
circulated to the LNC, but it doesn't specify that this ought to happen
before the contract is signed so that any problems identified by the LNC
can be addressed before execution.<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l1 level1 lfo3'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Our policy requires that the general counsel
review it, but it doesn't require that the general counsel's advice be
shared with those conducting the review. It could be that only the
chair knows what the general counsel's advice was.<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l1 level1 lfo3'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Compensation is a non-trivial percentage of our
expenses. The director-level contracts have substantial financial
impacts well beyond that person's base pay rate, and we just need more
eyes reviewing those offerings. Contracts can offer additional
benefits beyond the standard benefits in the employee manual. I
pointed out recently that the wording of bonus structures in recent years
has been changed such that having a good quarter at the beginning of a
year can create a bonus multiplier effect -- one good quarter can create
bonuses in other quarters even if the other quarters were terrible.
The prior wording did not contain that flaw. More eyes reviewing the
contract will reduce the chances of missing that kind of detail.<o:p></o:p></span></font></li>
</ul>
<div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>My proposal would:<o:p></o:p></span></font></p>
<ul type=disc>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l0 level1 lfo6'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>make it clear that the LNC must see the contract
before it is signed.<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l0 level1 lfo6'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>require that General Counsel advice be shared
with the EPCC and LNC.<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l0 level1 lfo6'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>require that a review body approve the contract,
not just have a chance to review it with no power to require
changes. That review body can either be the EPCC (we did create them
to play this sort of role), or if the EPCC members were cantankerous and
played the role of 3-person-roadblock to hiring person X rather than
finding functional contract language, a Chair could go around the EPCC and
have the entire LNC approve it instead.<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l0 level1 lfo6'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>change how the EPCC is appointed. It is
currently appointed by the LNC Chair, but since the EPCC would have a role
of approving the chair's proposal, that committee should be selected by
the LNC rather than be appointees of the Chair.<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;
mso-list:l0 level1 lfo6'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>disallow the LNC Chair from serving on the EPCC,
where he would be one of three votes approving his own proposal.<o:p></o:p></span></font></li>
</ul>
</div>
<div>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>An additional feature is
that because the LNC must see the contract 10 days before it is signed, if the
EPCC were to initially approve a contract but the LNC had a serious objection
to it, there would still be time for the LNC to use an email ballot to override
the decision of the EPCC.<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>There is a term in this
proposal that I want to point out. If the LNC approves the contract, it
requires "an affirmative vote from a majority of the fixed membership of
the LNC." If there are no LNC vacancies, and everyone votes, then
this is the same requirement as a majority vote. The "fixed
membership" clause says that the denominator for calculating a majority
isn't just the number of ballots cast. The denominator is the total
number of LNC seats including any vacant ones, regardless of how many might
have abstained from the vote.<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Co-sponsors?<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>-Alicia<o:p></o:p></span></font></p>
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