The CEO Performance Evaluation Form – An Essential For Any Board
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For the past five+ years, our CEO Performance Evaluation Form has been the most popular download on the Boardroom Metrics site.
Our CEO evaluation form is a straightforward measurement of the CEO’s capabilities. It looks at performance in the areas of leadership, management, financial management and governance. Administering the evaluation is simple and does not take long. Once done, Boards and CEO’s can use the evaluation to tweak CEO performance and role expectations.
Why are people downloading the CEO evaluation form?:
“As a Board member I need to become much more familiar with the role of the CEO.”
“We’ve never evaluated our CEO. Now, we know it’s a good governance practice.
“As a CEO this gives me good insight into the CEO role.”
“I’m an owner who wants to evaluate whether others in my Company have what it takes to do my job.”
Who’s downloading the CEO evaluation form?:
government agencies at all levels
The number of private companies downloading our CEO evaluation form has increased significantly. It’s clear that private companies are taking governance much more seriously.
We’re pleased to see the on-going and constantly increasing interest in CEO performance by organizations of all types. There is no person more fundamental to an organization’s day to day success than the CEO. And ensuring an organization has the right CEO is one of the most important responsibilities of Boards and owners.
How does the CEO performance evaluation form work? First, the CEO performance evaluation is typically performed by the Board or a sub-committee of the Board of Directors. In the case of private Companies, the CEO performance evaluation may be performed by the owners, the partners, trustees or an advisory Board that has been assembled by the owners to provide governance oversight.
Using the form is straightforward. Everyone responsible for evaluating the CEO’s performance follows the form and provides their ranking of the CEO’s performance in key areas that include:
The CEO’s leadership performance
The CEO’s management performance
Relationship of the CEO with the Board of Directors
The CEO’s financial stewardship of the organization
Key accomplishments of the CEO and assessment versus Board-set goals
Areas of CEO improvement
Performance Development Action Plan
Part of the CEO evaluation process is to understand how the CEO feels about his or her performance – and why. So, it’s important that the CEO also fill out the evaluation form.
How the CEO sees performance may vary significantly at times from the Board’s perspective. Understanding both perspectives is vital for both the CEO and the Board and helps ensure that expectations and understanding of issues are in sync. The evaluation form provides a great basis for two-way communication.
The CEO evaluation form also provides ample space to identify specific outcomes that the CEO has achieved, ensuring that there is full recognition of the CEO’s efforts. Also, there is plenty of space for laying out performance and output objectives for the upcoming measurement period. Identifying Board expectations is critical – as is ensuring that the CEO has the opportunity to provide input and perspective. That way, both the Board and the CEO go into upcoming performance periods on the same page regarding expectations.
Results of the CEO performance evaluation form are usually discussed between the CEO and the review committee or key members who are designated to work with the CEO. Typically, this process happens minimum once per year. In some cases, it may happen more often.