Why It’s the Whole Board’s Job – and How to Do It Right
When it’s time to evaluate the CEO or Executive Director, many Boards instinctively hand the task off to the Chair, the Executive Committee or the HR Committee. At face value, it seems like a practical solution – why involve up to a dozen or more people in what feels like a straightforward HR process?
But here’s the catch: the CEO or Executive Director is employed by the entire Board, not just a subset of it. That means the full Board is responsible for evaluating their performance.
When I bring this up in workshops, reactions range from eye rolls to laughter. Some find it hard to imagine that a large group can effectively tackle a performance evaluation. But relying on only a few individuals often leads to vague criteria, limited input and missed opportunities for
real accountability.
Here’s a closer look at why full-Board participation matters – and tips make the process both practical and purposeful.
Why Leaving It to a Few Doesn’t Work
When just one person or a small committee conducts the CEO evaluation, several issues can arise:
- Criteria may be unclear: The evaluator often sets the criteria without broader Boardinput.
- Limited perspective: Most Board members aren’t involved, so their views and insightsare lost.
- No shared expectations: The full Board hasn’t agreed on what’s being evaluated in thefirst place.
- Poor timing: Evaluations often start late and feel rushed – at times just weeks before areport is due.
- Lack of expertise: Evaluators may have no experience conducting meaningfulperformance reviews.
While it may seem efficient to delegate, this approach undermines the purpose of the evaluation: ensuring alignment, accountability and progress toward strategic goals.
How the Whole Board Can Do It Effectively
It’s not only possible but also smart for the full Board to take responsibility for evaluating the CEO or Executive Director. But it works best when expectations are clear from the start.
The evaluation process should be established when the CEO is first hired and revisited as needed. A strong process includes:
- Clarity on what’s being evaluated: This could include job description responsibilities, progress on strategic goals, compliance with policies and any other written expectations.
- A monitoring schedule: Regular performance and compliance updates throughout the year.
- Defined roles: Identify who collects and presents data to the Board.
- Use of monitoring data: Decide how the Board will interpret and apply the information.
- External input (if needed): Determine if external reviews or surveys are part of the process.
- Set a date: Schedule when the full Board will discuss the evaluation.
- Two-way conversation: Present and review the evaluation report with the CEO.
The key is consistency. Regular monitoring reports help build a shared understanding of performance and eliminate surprises. Such reports can help in the creation of a culture of accountability where all Board members stay engaged in governance at the executive level.
A Culture of Accountability Starts at the Top
When a Board embraces its role as the CEO’s employer, the performance evaluation becomes more than a task. And when monitoring CEO/Executive Director performance is done well, the entire board participates and the monitoring process becomes the Board’s strategy for the on-going evaluation. A strong, transparent process fosters trust, clarifies expectations and aligns leadership with the organization’s goals.
Why would your Board want to leave that to chance – or to just one person? Make CEO/Executive Director evaluation a Board-wide priority.
Need help designing an evaluation process that works for your Board? We offer governance workshops and tools that can help you build a robust, Board-led CEO evaluation system. Get in touch with us to get started. And be sure to check out our free resources on governance best practices.