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A closer look: bringing board and CEO performance into sharper focus
Trustee : the Journal for Hospital Governing Boards
|March 13, 1978
Summary
Boards of directors must assess their effectiveness and that of the CEO for sound leadership. Governance literature highlights the board's crucial role in performance assessment.
Area of Science:
- Corporate Governance
- Organizational Behavior
Background:
- Effective board leadership and decision-making are critical for organizational success.
- The early literature on corporate governance emphasizes the board's oversight function.
Purpose of the Study:
- To highlight the growing necessity for boards to evaluate their own performance.
- To underscore the importance of assessing chief executive officer (CEO) effectiveness.
- To review the attention given to board performance assessment in 1977 governance literature.
Main Methods:
- Literature review of governance publications from 1977.
- Analysis of scholarly attention to board responsibilities.
Main Results:
- Significant focus in 1977 literature on the board's role in performance assessment.
- Growing recognition of the need for self-assessment by boards and CEOs.
Conclusions:
- Continuous self-assessment by boards and CEOs is essential for robust governance.
- Performance assessment is a key responsibility of the board of directors.