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Hiring a CEO made (almost) easy
Trustee : the Journal for Hospital Governing Boards
|May 12, 1979
Summary
This guide outlines a structured approach for boards to select a CEO, define their compensation, and set employment terms. It covers the entire process from mission statements to final policies for effective executive leadership.
Area of Science:
- Business Administration
- Corporate Governance
Background:
- Board of directors' responsibilities include CEO selection and compensation.
- Effective CEO selection is crucial for organizational success.
Purpose of the Study:
- To provide a systematic framework for the board's CEO selection process.
- To guide boards in developing fair and rational CEO compensation and employment terms.
Main Methods:
- Development of a clear mission statement and job description.
- Structured candidate recruitment and evaluation.
- Creation of a comprehensive compensation package and personnel policies.
Main Results:
- An organized and rational approach to CEO selection.
- Clear guidelines for compensation and employment terms.
- Foundation for effective board-CEO relationship.
Conclusions:
- A methodical process enhances the quality of CEO selection.
- Well-defined compensation and policies support executive performance.
- Strategic CEO selection is a critical board function.