When President Richard Nixon signed the Alaska Native Claims Settlement Act in 1971, it was hailed as an experiment — an innovation that would create private sector opportunities for thousands of Alaska Natives living in poverty. It was also universally believed that Natives would be equal among all other shareholders. While many apologists staunchly proclaim the regional corporations are overwhelmingly successful in almost all aspects, I take exception on matters of governance and shareholder equality. To create equality among shareholders, it must be recognized the ANCSA experiment is not over.
Throughout the discussion on how to make Native corporate governance fairer and more transparent, we must remember to appreciate the fact ANCSA isn't just a Native discussion; it's an Alaska issue affecting almost every Alaskan who expects wise public policy decisions on economic development and resource management. The collective leadership of the 12 for-profit regional corporations is a powerful political force that most politicians are reluctant to face. The mere presence of regional CEOs is intimidating. However, the new Natives — those born after 1971 — shouldn't be intimidated. The thousands born since then must stand tall, just as the first leaders did in 1966 when they organized to face federal, state, and billion-dollar corporate obstacles.
Here's the problem: most of the current rules governing privately-held Native corporations are similar to those of publicly-traded corporations. This is somewhat like mixing apples and oranges or putting cats on a dog team. It doesn't work if the goal of ANCSA corporate governance is to meet the intent of those who fought for land claims. All Natives are equal. Thus, all shareholders should be equal.
Moreover, an ANCSA corporation is more than a publicly traded corporation, so why should it use the same methods for electing directors? For example, these companies influence public policies affecting and impacting Alaskans — particularly Alaska Natives. ANCSA corporations foster respect for cultures and traditions and donate thousands of dollars to elect politicians eager to do their bidding for the bucks they receive. And politicians and corporate managers do this without purchasing a single share of stock.
I have often said if there's any "inventors" of corporate democracy, it must be Natives. After all, the U.S. Congress settled aboriginal land claims along the lines of what Natives settled for: corporations. A half century ago, Natives didn't think there would be self-electing board of directors who would have the power to pick and choose the candidates they ran against. They didn't think the directors would use shareholder funds to pay for their own re-elections. Nor did the Natives pursuing justice and equality think the settlement they fought so hard for would enable a system of self-promoting boards who set their own per diem, directors' fees and salaries without any self-correcting scheme.
ANCSA is an experiment, but that experiment isn't over. The act has been amended dozens of times — most often the legislation has been proposed by those eager to accept political donations. In fact, I don't recall a single piece of legislation Alaska's congressional delegation initiated that would further corporate election fairness and transparency. Maybe it's because directors running for re-election don't trust shareholders to make the right decision and vote for those directors running for re-election.
Why does all this matter? Because thousands of square miles are owned by for-profit regional corporations — an area about the size of Missouri. The regional corporate boards choose to tell (or not tell) shareholders what they're doing. Most often, this "telling" is through the corporate newsletter, which is a management tool. Corporate newsletters are ethically bound to be balanced in reporting, as is expected in journalism. (By the way — this commentary isn't journalism. It's an opinion piece.)
As private corporations, the ANCSA regional corporations' decisions on resource development can be made by boards that aren't willing to trust the owners, and may not have legal obligations to disclose information. Publicly traded corporations in other states, however, are required to disclose information because of their proximity to municipal governments, such as counties.
So what's the solution? Perhaps we need a revolution in corporate and legislative action similar to the social and political upheaval in the 1960s, where subsistence fishermen, hunters, and gatherers came together to fight for a just, equitable land settlement. Many of the leaders then weren't college-educated because they lacked opportunities for secondary education. What they lacked in education, though, they made up for in courage, integrity, and community commitment. Today, there are hundreds of college-educated Alaska Natives eager to participate. But they too face obstacles. Back then, it was large multinational corporations; today, it's intransigent corporate leadership.
The first step in breaking the boards' lock on corporations is for the new Natives (those born after 1971) to recognize ANCSA didn't die with Nixon's signature. Then and today, it is a living experiment. It can be amended by Congress, which has happened many times since 1971.
The next step requires leadership and courage. The new Natives won't have the political might that comes with money, so they'll have to be well-organized and show their political strength at shareholders' meetings and the ballot box. If 65,000 Natives demonstrated political leadership in 1966, so can today's 150,000 Natives. Natives in 2016 are better educated, but they have yet to demonstrate the same level of courage, integrity and community commitment that was so pivotal to the leadership in 1971.
As it stands today, the bottom line in the financial statements of ANCSA corporations isn't a reward for courage. Rather, it's the satisfaction that comes from knowing you made it as easy to run for president of the United States as it is to run for the board of directors of a for-profit regional corporation. After all, Alaska Native shareholders are equal to all others.
The ANCSA experiment isn't over. The unresolved issues are apparent and more immediate as each new generation comes of age. Fairness, justice and equality requires attention at the federal level, and that is why I will file for public office this year.
Edgar Blatchford is a professor of journalism and communications at the University of Alaska Anchorage. His long history of engagement in business and public service has included time as chairman of the board and president/CEO of Chugach Natives Inc. (now Chugach Alaska Corp.).
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