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Assuming the list of people in the memorium I found is correct, a lot of spaces to appear to go to people who were nominated or won Academy Awards in the prominent categories:
Abby Mann - 1 win, 1 more nomination
Anthony Minghella - 1 win, 3 more nominations
Charles Joffe - 1 win
Charlton Heston - 1 win
Claude Berri - 1 win, 1 more nomination
David Watkin - 1 win
Isaac Hayes - 1 win, 1 more nomination
James Whitmore - 2 nominations
John Michael Hayes - 2 nominations
Jules Dassin - 2 nominations
Kon Ichikawa - 1 indirect nomination (he direct The Burmese Harp, best foreign language nominee); also a major post-war Japanese director.
Leonard Rosenman - 2 wins, 2 more nominations
Paul Newman - 1 win, 9 more nominations
Paul Scofield - 1 win, 1 more nomination
Richard Widmark - 1 nomination
Robert Mulligan - 1 nomination
Roy Scheider - 2 nominations
Stan Winston - 2 wins, 6 more nominations
Sydney Pollack - 2 wins, 5 more nominations
So that leaves 9 people mentioned who I don't think were ever nominated:
Charles Schneer - Major B movie producer
Evelyn Keyes - Prominent second female lead in the '40s/'50s.
Joseph Caracciolo - Seems to have done art design and producing. IMDb doesn't even know he's dead yet. No wiki page.
Maila Nurmi - Better known as Vampira
Manny Farber - Prominent film critic
Ned Tanen - Former major studio head
Ricardo Montalban - Actor
Robert DoQui - Actor
Warren Cowan - Legendary publicist.
So it looks to me like they probably have some rule about which former nominee/winners are automatically included. Then they know they have X slots available for all of the other people who died that year and probably try to spread the love around a bit through industry.
And then hunker down for the inevitable barrage of "why didn't my husband get in!" complaints (I know this is real, some book on the Oscars I've read mentioned that many attempts have been made by producers to remove the segment so they wouldn't have to deal with the hurt feelings afterward).
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