BSNC recently conducted an open enrollment survey as part of its ongoing efforts to evaluate the possibility of opening enrollment to descendants of original shareholders born after December 18, 1971. In 2012, the BSNC Board of Directors established the Open Enrollment Subcommittee to assess the feasibility of this initiative. Since then, the Board has been diligently evaluating open enrollment for descendants of BSNC shareholders.
Following the survey conducted by DHM Research in October 2021, whose results were shared in August 2022, the Board and management are taking additional steps to understand the potential impact on existing shareholders. The 2024 survey was conducted to capture what matters most to BSNC shareholders and will guide the development of future goals should open enrollment be put to a vote. The Board of Directors is committed to carefully considering the appropriate path forward, informed by shareholder input. Quyaana for your involvement and taking the time to fill out the survey.
The 2024 Survey had 2,059 responses as follows:
- Are you in favor of enrolling descendants born after December 18, 1971, and placing the question on the 2025 proxy for a Shareholder vote?
The enrollment of descendants of original shareholders is expected to significantly increase the BSN shareholder base, given the number of descendants born since December 18, 1971.
Results: 74% yes 26% no
- Are you in favor of enrolling descendants even if the impact is a reduction of the dividend?
Maintaining dividend amounts would most likely only be achieved if new stock was not issued by way of a decision not to open the rolls. Should open enrollment be implemented, there is no guarantee that BSNC could financially perform to meet the dividend expectations of BSNC’s current shareholder base. BSNC currently has approximately 8,200 Alaska Native shareholders. The Company does not have an estimate on how many descendants would be eligible to enroll.
Results: 84%* yes 16% no
*Results from question two reflect only the responses of those who answered yes on question one
- Should new enrollees have the same voting rights as shareholders with original shares?
Current voting rights include: the right to vote in elections for the Board of Directors as well as the right to receive dividends or other distributions from the corporation based on the number of shares held. If the individual is a non-Native shareholder by inheritance, they do not have the right to vote.
A yes vote would indicate new enrollees should have the same voting rights as shareholders with original shares. For shareholders under 18, the practice will remain for their guardian to cast their votes in elections.
A no vote would indicate new enrollees should not have the same voting rights as shareholders with original shares.
Results: 70% yes 30% no
- Should all lineal descendants of original shareholders, regardless of blood quantum, be allowed to enroll?
Blood quantum minimums were previously required by the passage of the Alaska Native Claims Settlement Act to be eligible to enroll in Alaska Native regional and village corporations. An amendment was made to ANCSA in 1992 to remove that requirement. It is estimated that after five years, 2,908 lineal descendants would be excluded from enrolling. After 10 years that number is estimated at over 4,000. Three of six regional corporations that have opened their enrollment currently have a blood quantum requirement. Of those three, some are considering removing the requirement.
A no vote would indicate there should not be a blood quantum requirement and would include all shareholder descendants.
A yes vote would indicate new enrollees should have a minimum blood quantum requirement, including shareholder descendants that may not meet that requirement.
Results: 61% yes 39% no
- Should individuals who are adopted into shareholder families be allowed to enroll?
Adopted In individuals are adopted by Alaska Native people but may not be of Alaska Native decent themselves.
Results: 45% yes 55% no
- Should lineal descendants of an original shareholder, even if the lineal descendant was adopted out, be allowed to enroll?
Adopted out individuals are adopted to non-Native families but are lineal descendants of original shareholders.
Results: 69% yes 31% no
Additional helpful information:
BSNC currently issues two classes of shares: Class A shares are held by at-large shareholders and are not associated with a village corporation in the region. Class B shares are held by shareholders also enrolled with a village corporation in the region. Open enrollment would create another class of shares, which would be issued to BSNC descendants.
Besides dividends and the ability to vote for the Board of Directors, BSNC descendants receive many of the same benefits as BSNC shareholders. Descendants are eligible to receive scholarships from the Bering Straits Foundation and qualified job applicants are eligible for the same hiring preference offered to BSNC shareholders. Descendants who meet academic qualifications are eligible to participate in BSNC’s Summer Internship Program. Descendant use of BSNC’s lands for recreational and subsistence endeavors is allowed and encouraged. In addition to these benefits, BSNC issues bereavement benefits provided to families to assist after the death of an original BSNC shareholder, spouse of an original BSNC shareholder, or lineal descendant of an original BSNC shareholder.