How should the board evaluate the CEO?
The board should conduct an annual evaluation of the CEO. The CEO should be an active partner through self-evaluation. In addition the job description and the CEO’s annual work are primary documents utilized in this review. Many boards have developed a method of getting input from the various constituents of the organization including supervised staff. The formal method of doing this is called a “360 review.” There are excellent instruments available through Boardsource and other national resources. (See additional resources at the end of this FAQ.) Usually the Executive Committee conducts the evaluation. It is all too common that the Executive Committee or (worse) the chair does not share the evaluation and compensation level with the board. Such lack of transparency is not in the best interest of the organization, board or CEO. It is important that the evaluation be shared with the full board. For larger nonprofits we would suggest they utilize outside expertise in conducting the eva
