In a nonprofit organization, the chief executive officer is an employee of the board. The CEO is responsible for seeing that board policies and decisions have been carried out; the board, functioning according to the dictates of good governance, has a corresponding responsibility for reviewing the CEO's performance on a regular basis and setting performance requirements and goals. The CEO needs to know the strengths and weaknesses of his or her performance—what is going well; what indicates a weakness. Often the board fulfills its duty of review through a CEO appraisal (or performance evaluation).
Therefore, the major goals of a CEO evaluation are to ensure that goals set by the board are completed in the most efficient and effective manner, and to support the CEO in his or her performance. When the board clearly communicates performance standards and expectations, the CEO will be freed from wondering and worrying about performance and performance expectations and, will instead, be ...