WebEx Conference on
2006 Ballot Propositions
July 17, 2006
Steve D’Arcy, Chairman of the CAS Board
Paul Braithwaite, CAS President
Governance Initiatives on
2006 Ballot



Board proactively considers governance issues
by allotting time during Board meetings for
discussion.
Formed Board Task Force on Outside
Representation in CAS Governance Process in
March 2005.
Charged with considering the role of outside
representation in the CAS governance process.
Governance Initiatives on
2006 Ballot
Recommendations
 Appointed Board Members
 Create a class of Board Members consisting
of up to three additional Board Members to
be appointed by the Board.
 These appointments can include non
actuaries.
 Executive Director as Member of Executive
Council
The Board’s Position – New
Class of Board Members (1)

New Environment for Boards





Sarbanes Oxley Act
Penrose Report and Morris Review of Profession
Increased responsibility for Board
May need expertise beyond those elected
Better Decision-Making




Broader input
Change in dynamics of Board
Move away from inward thinking
Focus on key issues
The Board’s Position – New
Class of Board Members (2)

Perception
Change reflects prevailing opinion on governance
 Positions CAS as outward looking and forward thinking
 Other actuarial organizations have been forced to
involve non-actuaries in governance


Act Now
Current system is not broken
 If it does break, another group may take over to fix it


Intention of Board to Add
VP Casualty Practice Council
 One non actuary

The Board’s Position –
Executive Director on
Executive Council



The Constitution established the membership
of the Executive Council when we did not have
an Executive Director (chief staff executive)
The change reflects our new organizational
structure
Needed to attract and retain qualified candidates
ACAS Rights
on 2006 Ballot
Historical Perspective on ACAS:
 Since 1914, two classes of membership.
 Associate & Fellow designations have changed
over the years:

Were initially based on company responsibilities.
Fellows: Department heads.
 Associates: Actuaries who worked within departments.


Exams were instituted in 1915:
Number and content of exams has varied over time.
 Currently a two-exam educational difference.

ACAS Rights
on 2006 Ballot



That the unrestricted right to vote be given to
members either upon attainment of Fellowship
or five years after attainment of Associateship,
whichever should occur first.
That all Associates who have been members for
at least five years can stand for election to the
Board of Directors, with no change in the
current size of the Board.
That all Associates who have been members for
at least five years could hold all officer positions
with the exception of President, President-Elect
and Vice President - Admissions.
The Board’s Considerations –
ACAS Rights


Voting rights unchanged since 1914; reflect a time when
there was a greater difference between classes.
Associates are an important part of the Society:






Many Associates contribute extensively to the profession as
volunteers, on committees, as speakers and authors, etc.
Associates have equal practice rights.
Associates cannot vote even though they pay dues.
Many associates are suggested for positions on the
preferential ballot each year, but not eligible to serve.
31% of Associates no longer take exams.
Ought an ACAS have the same rights as a CAS
member by Mutual Recognition?
Conclusion




The Board recommends that Fellows vote in favor of
the proposed changes to the Constitution and Bylaws.
Please take the time to learn about these important
issues on the 2006 ballot.
 “Meet the Issues” section of the CAS Web Site.
 Special elections publication to be mailed with
August issue of the Actuarial Review.
Discuss the issues with other members.
Vote on the proposals.
 Balloting takes place August 1-September 1.
Question and Answer
Session
Thank You!