A structured approach to the assessment of a CEO gives boards a greater chance of a positive and successful relationship with the CEO, while improving the overall performance of the organisation.
A strong relationship between the board and management is a critical part of good governance.
Effective Governance’s approach to CEO assessment allows the board to determine how well the CEO has performed over a particular period and to determine the CEO’s development needs. The most effective review of the CEO requires objective and reliable data to be used to compare the CEO's performance and competencies against their documented performance objectives. Our approach to CEO assessments combines a number of leading practice tools and processes including:
a survey of the board and senior management;
a CEO performance evaluation;
the development of a policy and procedure for the ongoing assessment of the CEO; and
a recommendation in relation to the effect of the assessment outcome on the CEO's remuneration structure.