The Board has the responsibility to select, manage, and compensate the CEO. Core to these efforts is effective CEO goal setting and performance evaluation, and yet it is a challenge for many Boards, particularly when Directors lack deep experience in the subject matter. Inadequate CEO Performance Management can quickly erode value in an organization. Done well, the Board and the CEO are aligned on what needs to be done and have effective routines to manage it – enabling the CEO can prioritize their focus, and that of the executive team, on the highest value efforts.
CEO goal setting, performance evaluation, and incentive planning can be stressful processes for Boards and their CEOs, particularly in the absence of a director with deep experience in this area. Our expanded capabilities will complement our normal-course support with year-end process and incentive program design and will ensure our clients can confidently make important decisions related to their CEO’s pay and performance.
Align the Board
Gather input on the key focus areas and development areas that will support the CEO’s success
Facilitate alignment between the HRC and the CEO to identify and define specific metrics and objectives which track CEO goals to CEO STIP, both qualitative and quantitative
Align on the process for progress monitoring, discussion cadence, and feedback delivery
Enable a regular feedback process that fosters transparency and clarity throughout the year
Year end Assessment
Partner with HRC and CEO to gather inputs and facilitate the performance appraisal discussion