Performance review and appraisal of the CEO

Accountability for performance outcomes is a key tenet of good corporate governance, and as the most senior executive in the organisation it is important that the chief executive officer (CEO) is held to account by the board.

Although the board should exercise this function on a continuous basis, it is good governance practice to set aside time, at least annually, to dedicate to a more formal performance review and appraisal of the CEO. Many organisations also incorporate the CEO’s annual remuneration review in that process.

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