SST: Our legacy for future generations

When talking with Director Ozzie Sheakley, his passion for Huna Totem Corporation and desire to serve shareholders shines through. Ozzie has been on the Huna Totem Board of Directors since 1982 – that’s 35 years of dedicated service. He watched the corporation make significant progress since its inception in 1973. He remembers the early days when shareholders had to cut and sell timber just to keep the corporation’s lights on.

Ozzie was there in 1994, along with his fellow directors, when shareholders voted to establish the Shareholders Settlement Trust (SST).

“Well, the idea of establishing the SST originally came from George Cooper, with the goal of giving shareholders an additional benefit. The investment would grow over time and, through tri-annual pay-outs, ensure that our children and grandchildren’s children would receive a cash benefit from the earnings of the initial investment forever,” remarked Ozzie.

Ozzie explained that when considering the options on how to structure the SST, the intention of the original distribution formula (60% net profit distributed annually) was so the SST would be self-sustaining and continue to generate revenue and monetary distributions for hundreds of years into the future. To ensure that the SST remained sustainable, the establishing board of directors set up an initial five-year review process and additional reviews every 10 years. During the review process the SST Board of Trustees, made up of Huna Totem Corporation’s Board of Directors, reviews the SST’s financial performance and may put proposed changes to ensure future sustainability up to a unitholder vote.

“The review process gives unitholders a voice. They own the assets that are in the SST, and it is important that they support the SST’s continued operation and mission to provide benefits to shareholders forever,” Ozzie said.

Director Ozzie Sheakley speaking at the 2018 Annual Shareholders Meeting

According to Ozzie, the SST is living up to its intended purpose. Twenty-five years since its inception, the SST has distributed payments totaling more than $52 million to shareholders. There are several factors, such as the economy, outside of our control that affect the growth of the SST. It is important we recognize its benefit and intended purpose to be our legacy for future generations.

“Everyone has a stake in the SST and a significant role to play,” Ozzie said. “It’s up to the board of trustees to make sure the SST’s assets are invested responsibly, with the guidance of financial professionals, and to review and analyze its performance every 10 years. That way they can present the best option for altering the SST to ensure its health and longevity and put that recommendation up to a vote of unitholders," continued Ozzie.

“On the other hand, it’s up to unitholders to participate in the 10-year review process by attending meetings, reviewing materials, and voting for the option they believe will allow the SST and our people to continue to thrive,” Ozzie concluded.

The SST Board of Trustees begins the 10-year review process in the fall of this year. The process consists of unitholder meetings in which comment periods and question-and-answer sessions are part of the agenda. Following the review process, the board of trustees will finalize the ballot with proposed changes to be put to a unitholder vote. Unitholders will then vote on options presented by the board that they believe best allows the SST to continue providing benefits for future generations.

As the 10-year review process nears, unitholders will receive electronic and printed materials informing them on the process, meeting dates, health of the SST, and effects of different options that may be a part of the ballot. Please keep your eye on your mailbox and “Like” Huna Totem Corporation’s Facebook page to stay up-to-date on the latest activities.