A key function of any board is to appoint and monitor the performance of the CEO. In order to do that effectively the board needs to set a performance framework and periodically provide feedback to the CEO against that framework.
To ensure the board’s approved strategic plan is delivered in practice, the CEO’s performance agreement should be aligned to the strategic plan. Other key aspects of the CEO’s performance framework should relate to the CEO’s relationship with the board and the CEO’s leadership behaviours and attributes.
Directors Australia assists boards perform this critical function through:
- Developing and/or refining CEO performance frameworks and key performance indicators
- Facilitating the performance review process including board and broader internal and external stakeholder feedback
- Assisting boards in other aspects of their relationship with the CEO.