The Board of Trustees is responsible for conducting the CEO evaluation and regularly reviewing the policy and process to ensure it contributes to the achievement of the organization’s mission, vision and goals. The purpose of the CEO evaluation is to provide timely, clear and focused input to the CEO about how well he or she is performing in the key performance areas identified as most critical by the Board of Trustees in achieving the hospital’s or health system’s strategic objectives.
The CEO should be evaluated using criteria specified in a CEO compensation policy established by the Board, and agreed to by the CEO. The criteria used to evaluate the CEO and determine incentive payment should be based on a variety of factors that support the organization’s mission, vision and goals. When mutually agreed-upon, the CEO evaluation may include a “360-degree” approach that seeks feedback on performance from the Board, medical staff leaders, senior management and the CEO.
The following assessment form provides an opportunity to evaluate the CEO’s performance across three dimensions: essential CEO accountabilities, personal attributes and leadership qualities, and CEO goals and objectives. The next section describes how to use this form to create and conduct a CEO assessment process for your organization.