The Nonprofit Board’s Role in Evaluating and Compensating the Chief Executive Officer

Non-Profit Board's Role in Evaluating and Compensating the CEO: 1. An annual evaluation is very important, both for the board and the CEO. Unless directors/trustees know that they, as a full board, do a good evaluation based on criteria and performance goals they approved, the tendency is for each director to silently (or not so silently) critique the CEO on his or her own criteria. It is impossible to satisfy all directors using their own criteria! Knowing a good evaluation takes place each year gives board members confidence in the organization. It is often the catalyst for changes in the strategic plan. And it often helps clarify the board's role, especially in its relationship with the CEO.