THE CHAIRMAN HOLDING A PERFORMANCE REVIEW WITH THE CEO
Despite the seniority of the CEO they should be treated the same as any other employee of the company by having specific goals and objectives. The CEO should be measured against these goals and held to account for performance of business execution and financial results. Here is some general guidance on how a chairman should conduct a performance review with the CEO:
Establish clear performance objectives: Before the performance review, the chairman should establish clear performance objectives for the CEO. These objectives should be based on the company’s strategic goals and should be measurable.
Gather feedback: The chairman should gather feedback from various sources, including the CEO’s direct reports, board members, and other key stakeholders. This feedback can be considered in the performance review and provide a more complete picture of the CEO’s performance.
Schedule a meeting: The chairman should schedule a meeting with the CEO to conduct the performance review. The meeting should be held in a private setting where both parties can discuss performance openly and honestly.
Review performance: The chairman should review the CEO’s performance based on the established objectives and feedback gathered from others. The review should focus on achievement against goals, strengths, weaknesses, and opportunities for improvement.
Set goals: The chairman should work with the CEO to set goals for the upcoming year based on the performance review. These goals should be challenging but achievable and should align with the company’s strategic goals.
Follow up: The chairman, in addition to the board meeting business reviews, should follow up with the CEO throughout the year to ensure that goals are being met and to provide ongoing feedback and support.
Document the review: The chairman should document the performance review in writing and provide a copy to the CEO. This documentation should be kept confidential and should be used in future performance reviews.
Overall, the performance review of the CEO is a very important event and should be given the formality it deserves. The review should be conducted in a constructive and supportive manner, with a focus on improving the CEO’s performance and achieving the company’s strategic goals.
https://www.associationofchairs.org.uk/wp-content/uploads/2018/10/AppraisingYourCeo.pdf
https://www.ddiworld.com/blog/ceo-performance-review
https://boardagenda.com/2022/03/31/when-did-your-board-last-review-ceo-performance/
https://governance4fe.co.uk/wp-content/uploads/2020/12/CEO-Performance-360-Appraisal-Questions-Dec.2020.pdf
https://www.interimchairman.com/blog/be-a-leader-not-a-management-bully/
https://www.interimchairman.com/blog/education-for-directors-ceos-and-chairmen/
https://www.interimchairman.com/blog/the-differences-in-the-roles-of-chairman-and-chief-executive/
https://www.interimchairman.com/blog/the-chairman-and-ceo-relationship/