Cato's 10 Questions for Charles and David Koch | Cato Institute | Board Of Directors

Ten Questions for the Kochs Statement, March 2011, from David Koch: Cato is “viewed as one of the

nation’s foremost upholders of advancing the idea of liberty. I am proud of and believe Cato’s success has been due to its outstanding leadership, including various groups of accomplished board members who have brought a diverse set of views and experiences to advance Cato’s vision.” Statement, March 2012, from David Koch: Cato “is not nearly as effective as it could be. This is, in large part, due to the behavior and management practices of its CEO .... [T]he current Cato board has allowed this behavior .... Having a board in thrall of the CEO has been the downfall of many nonprofits. ... [Ed Crane] should be replaced as soon as possible – preferably within six to eight weeks.” 1. What acts or events triggered your move to take control of the Cato Institute, which you praise as “one of the nation’s foremost upholders of advancing the idea of liberty”? 2. Why applaud Cato’s “outstanding leadership” while insisting its CEO be replaced in “six to eight weeks”? Why commend Cato’s “accomplished board members” for bringing “a diverse set of views and experiences to advance Cato’s vision,” and then remove four directors? 3. Cato’s board, before you altered its composition, comprised civic and business leaders who donated more than $30 million to the Institute. Those same persons determined the CEO’s compensation and his tenure in that position. Is that a board “in thrall of the CEO” or vice versa? 4. Cato’s criteria for board members include: (a) no dependence on the Institute, management, or shareholders; (b) commitment to libertarian principles; and (c) willingness and ability to generate significant financial support. You were not happy with the Institute’s choice of directors. Which of the selection criteria would you change or delete? 5. Virtually all your appointees and nominees for Cato’s board are not libertarians, had not previously expressed interest in the Institute, are political activists, and serve you in order to promote the Koch corporate and political agenda. Is that the type of independent director that furthers our mission? 6. You have written, "Our hope is that the commitment to advancing a free society will become Cato’s overriding agenda." What do you believe is currently Cato's overriding agenda? If it does not advance a free society, why then are you “proud of ... Cato’s success”? 7. On March 1, after filing a lawsuit seeking control of Cato, you said your purpose was “to ensure that Cato stays true to its fundamental principles.” What are those principles? How has Cato not been true to them? 8. You profess concern about the damaging impact of media reports. Why did you instigate the public relations campaign by orchestrating an exclusive story about your lawsuit in Politico? 9. Why are you engaged in a takeover attempt that will grievously injure the movement for individual liberty that you endorse? What specifically has Cato not done that you want it to do? What has it done that you would like it not to do? 10. How could an Institute “owned” by the Kochs, whose board is appointed by the Kochs, be viewed as a credible source of non-partisan, non-aligned, independent commentary on vital public policy questions?

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