| Evaluating Your Chief Executive
A Practical Tip Sheet for Nonprofit Boards |
Click HERE to download – CEO_Evaluation_TipSheet
| Evaluating the Chief Executive is one of the board’s most important responsibilities. A consistent, well-structured evaluation process strengthens the CEO–board relationship, clarifies expectations, and ensures the organization is well-led. |
Why CEO Evaluation Matters
Under Ohio Revised Code §1702.30(A), “all of the authority of a corporation shall be exercised by or under the direction of its directors.” The board exercises that authority over personnel through one person — the Chief Executive. This makes the CEO evaluation process one of the highest-leverage governance activities a board can undertake.
The Eight Steps of Nonprofit CEO Evaluation
| 1 | Appoint a Board Member to Lead the Process | Board Chair, Governance Committee Chair, or designated CEO Evaluation Task Force Chair. Owns timeline, communications, and confidentiality. |
| 2 | Meet with the CEO to Define the Process and Gather Materials | Clarify expectations and timeline. Collect: CEO job description, annual goals and KPIs, CEO’s individual goals, any self-assessment or narrative provided by the CEO. |
| 3 | Develop or Review the Assessment Tool | Relevant, confidential, structured. Include sections aligned with: strategic leadership, operational management, board relations, fundraising/external relations, achievement of goals and KPIs. |
| 4 | Distribute the Assessment for Board Feedback | Full board (best for engagement and well-rounded input) or Executive Committee (tighter process). Provide assessment tool, CEO’s individual goals, and supporting documents. |
| 5 | Conduct a Compensation Review (every two years) | Benchmark using trusted nonprofit compensation surveys. Review performance contextually. Full board approves compensation package. Attractive enough to retain top talent without being excessive. |
| 6 | Compile and Analyze Results | Analyze survey feedback and compensation data. Draft summary: key strengths, areas for development, progress on goals, compensation recommendations. |
| 7 | Deliver Feedback to the CEO | Board Chair and evaluation lead meet directly with CEO (should be two people). Share summary, constructive feedback, and developmental suggestions and support. |
| 8 | Share Process and Summary with the Full Board | Maintain confidentiality of individual responses. Communicate process overview, general findings, outcomes, and agreed-upon follow-up steps. |
Don’t Forget — Succession Planning
The board is responsible for ensuring a written succession plan exists for the Chief Executive. Two types of succession planning matter:
| Emergency / Urgent Succession
Covers departure without notice or long-term absence. Ensures the organization can operate without the CEO. |
Planned / Departure-Defined Succession
Addresses a future planned retirement or departure. Allows time for deliberate search and transition. |
The board’s role also includes:
- Ensure organization-wide succession plans and documentation of key processes exist
- Establish a Search Committee when a CEO transition becomes necessary
Keep the Boundaries Clear
| Boards SHOULD
• Hire, evaluate, compensate, and (if needed) separate the Chief Executive • Ensure a succession plan exists • Approve the total personnel budget and CEO compensation • Approve whistleblower, conflict-of-interest, and personnel policies • Ensure sufficient resources to attract and retain excellent staff
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Boards SHOULD NOT
• Insert themselves in operational activities — managing staff is the CEO’s job • Handle HR matters beyond the Chief Executive • Work around the Chief Executive for personal agendas • Disclose confidential HR or personnel information with outside parties • Skip or postpone the annual evaluation
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