O'Reilly logo

A Primer on Corporate Governance, Second Edition by Cornelis A. de Kluyver

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 8

CEO Performance Evaluation and Executive Compensation

CEO Performance Evaluation1

Regular, purposeful CEO performance evaluation by the board is a cornerstone of effective governance. According to Spencer Stuart’s 2011 Board Index, 94% of S&P boards surveyed said their CEO’s performance is evaluated annually. Evaluation of individual directors is becoming more common; 34% of boards did it in 2011, up significantly from previous years. Twenty-one percent of boards now review performance at every level—the full board, committees, and individual directors.

Performance evaluation at the CEO level is difficult. Rivero and Nadler (2003) note that the difference between a good evaluation process in which everyone wants to participate and one ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required