Topic summary
CEO
Extracted from the Wikipedia article Chief executive officer.
CEO selection and performance evaluation
CEOs and senior executives are governed by the board of directors. The proper selection and evaluation of the CEO and the executive team is critical to the company’s performance. Yet there is no established standard framework to evaluate and govern the CEO performance. Aside from Sarbanes Oxley Act legal standard to govern the financial reporting of public companies and hold the CEO & CFO accountable, there are no industry standards to test the CEO competency and actions or to help align the performance of the executive team with the shareholders' interest and performance expectations. One initiative proposes a standardized questionnaire used in annual CEO reviews and senior executive recruitment. These questionnaires help guide CEO strategy and assure the shareholders that the company and its executive team are on the right track. According to the Executive Institute, the top 10 questions every board must ask its CEO, include the following: