Board Governance: Best Practices for Not-for-Profit CEO Evaluation

Being a member of a not-for-profit organization’s board of directors allows members to be directly involved in the decision-making that ultimately decides the mission and direction of the organization However, with the transitory nature of many boards, with members often serving one or two terms, it can sometimes be difficult to set specific, consistent guidelines for Chief Executive Officer reviews.Changes among board leadership is often a given within a not-for-profit organization, so it is beneficial to establish a process for evaluating your CEO and determining appropriate rewards that can be consistently followed, even through transitional phases within the board. Increasing scrutiny regarding CEO compensation by legislators, donors, and the general public has also made it more important that the organization has an evaluation process that is documented and aligns with its mission and goals.There are many steps that can be taken to ensure that a board’s CEO evaluation process is sound and reduces any undue risks to the organization. Read More