Increasing the Effectiveness of the Board of Directors

Composition and Effectiveness of the Board

Given the board’s critical role in the CEO performance management process, it is important to ensure that each board member, board committee, and the full board can function, in general, as effectively as possible. To that end, what follows is a discussion of how to increase board member effectiveness and improve the composition of the board, as well as findings related to board and board member evaluations and the influence of board member compensation on the monitoring of CEO performance. You will find in Exhibit 7.8, however, considerations for improving board member effectiveness, specifically in the context of performance management.

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