Today's Boards should take a proactive approach to CEO performance evaluation. When done effectively, this evaluation demonstrates a commitment to a fundamental aspect of good corporate governance and links the success of the organization with its leader.
The XCEO, CEO Leadership and Operating Performance™ exercise, allows Board members to evaluate the CEO’s leadership and operating performance effectively, and efficiently against board established short-term and long-term objectives, which are essential to the corporation's success. It should be implemented as an integral part of an overall effective corporate governance process.
CEO leadership and operating performance are the ultimate measures for linking the effectiveness of the CEO and the success of the organization. Directors should not presume the CEO is aware of their views, regarding his or her performance. The Board should make sure to schedule intervallic reviews to discuss the CEO's progress toward established goals and objectives.
Enlightened Corporate Governance®, which is the foundation of an enlightened Board, will not deprive the CEO from receiving constructive feedback. The Board acknowledges that, when implemented effectively, individual leadership performance reviews provide opportunities to improve the CEO's value-added contributions to building long-term shareowner value. The XCEO CEO Leadership and Operating Performance Evaluation™ will help the Board assess the CEO's performance in total anonymity.
The CEO Leadership and Operating Performance assessment is part of the XCEO Constructive Analytical Introspection™ process, which is designed to help Board members, and the CEO, to assess their performance through self-reflection. It is indexed against defined traditional, standard, and enlightened Directors’ risk scores, as defined by XCEO. A combination of research, industry and comparable data, insight and boardroom experience combine to form the XCEO traditional, standard, and enlightened parameters.
All XCEO models are continually re-evaluated and adjusted based upon information obtained from our customers. They are designed to provide an analysis of relative performance.