The goal of the annual Chief Executive Officer performance review is to recognize how well the executive is performing in their job and to identify any needed improvements. This review should clearly be based upon the agreed organization’s goals and performance expectations set by the Board for the CEO to the actual achievements of the organization and the CEO.
Annual reviews of the CEO’s performance are an excellent way to identify and reward the CEO for their performance as well as communicate key areas of needed improvement to successfully guide the organization forward. All members of the Board should participate and be encouraged to provide their input into the CEO’s annual performance evaluation. We strongly recommend that this major Board responsibility not be left to the Board Chair or Executive Committee only.
This review should also identify and include the establishment of organizational goals for the coming year’s executive evaluation. It is vitally important for both the Board and CEO to discuss and agree on these new goals. The CEO Annual Performance Review Product includes the CEO Self -Evaluation survey form too.