Establish a Formal Process for the Board’s CEO Oversight

Corporate partner Doug Raymond and associate Jamison Whiting coauthored an article for Directors & Boards titled “Establish a Formal Process for the Board’s CEO Oversight,” which discusses the responsibilities of a board of directors and its oversight of a chief executive officer (CEO).

The authors explain that the board is obligated to oversee the management team and ensure that officers are performing efficiently and consistently with the company’s strategic direction and values. They add that the board must rely on the CEO to operate the business on a daily basis.

Regarding the relationship between the board and the CEO, Raymond and Whiting note that the most important duties of the board are the decisions to hire and fire the CEO and that the board is naturally very invested in the CEO’s success.

The authors add that with unprecedented challenges related to social and political controversies, the pandemic and the extensive focus on diversity and inclusion, the board should consider establishing a regular and well-articulated process for evaluating the CEO.