CEO Evaluation

 

“The affairs of an organization must be managed under the direction of the Board. This does not mean, however, that the Board manages the organization on a day-to-day basis, since most, if not all management functions have been delegated to the CEO. The Board, however, retains the ultimate direction and control over the activities of the CEO and where appropriate, others on the senior management team.”

The statement above is a sample of what typically is contained in the by-laws for governing boards of many organizations. Fundamentally, it says that the board sets broad direction for the corporation with the CEO along with his/her staff, who, acting as agents, carry out these directives. Essentially, the CEO is the single linking pin, connecting the organization’s human, financial and physical assets back to the Board.

Thus, there is no more important duty of a board than the hiring of the right CEO. Once, the hiring decision has been made, another critical duty is to…


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