Providing support for executive leadership, periodically assessing the chief executives performance, and acknowledging service through compensation are key board responsibilities.
The only place CEOs can look for support that really counts is from the board. A supportive environment includes providing guidance or encouragement when needed, as well as frequent and constructive feedback.
Annual assessments of the CEO help him/her perform more effectively. Goals and objectives, mutually discussed and agreed upon, should serve as the primary criteria in performance reviews.
A good performance review helps determine adjustments in compensation, but IRS guidelines for compensation should also be followed.