Final Report (all chapters)

How should these individuals be identified? Standard random sampling techniques followed
by a standardized interview would produce a sizeable pool of suitable candidates. We believe
this approach is superior to the British approach in terms of procedural fairness, in that it would
not be subject to self-selection bias, and the selection criteria would be established in advance. In
order to further reduce possible sources of administrative drift, independent board members
could be selected at random from the pool of suitable candidates. In turn, this suggests that in
addition to the selection criteria discussed above, it may be necessary to ensure balance in terms
of regional representation and socio-demographic characteristics. Alternatively, the head of
agency could personally select independent board members based on a personal conversation.
Selection through a head of agency would probably identify better-suited candidates, but in the
current political climate, it is unlikely to be acceptable to all affected parties. The technocratic
alternative may not produce equally capable independent directors, but it is a practicable solution
and would not be regarded as biased. 28
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The novel nature of this appointment process may require Congress to periodically revisit the enabling
legislation and update appointment rules and procedures based on past experience.
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