Performance Management: Putting Research into Action

Summary and Recommendations

The CEO performance management process continues to evolve, with corporate scandals, shareholder activism, legislation, and regulatory reforms providing significant impetus for the introduction of greater rigor and transparency to the overall process. Boards of directors, as a result, have received a wake-up call and are growing ever more accountable for ensuring effective corporate governance, including CEO performance management and compensation. Boards are also growing more satisfied with their progress and effectiveness, overall, as evidenced by recent surveys (Mercer Delta Consulting, 2005; What directors think, 2005). Finally, as Nadler, Behan, and Nadler (2006) report, if not for the recent requirements, ...