6 Tips From CEOs On Providing Feedback to Your Board of Directors

A CEO of a corporation is employed by the Board of Directors, who are elected by the Shareholders of the Corporation. The CEO therefore has a panel of “bosses” he or she must please to keep her job. Here are 6 tips to help you do just that.

1. Communication is King. 

You can be the best CEO on the planet, but if you are not effective at communicating your successes and challenges to the Board, your job may be at risk the minute your company faces financial stress. The Board can be a CEO’s greatest asset when the CEO effectively communicates with the Board. This means the CEO is tasked with ensuring she meets regularly with the Board and communicates clearly. It is often the CEO’s responsibility to run with tasks and follow up on communication in the future.

2. Manage Expectations. 

A CEO must keep the Board advised on market conditions, financial projections, and what’s in store for the company in the future. It’s up to the CEO to provide accurate projections to the Board. It serves no one for the Board to be fed pie-in-the-sky promises of future profits which are not met.

3. Act as an Educator. 

The CEO is tasked with educating the Board on conditions, changes to the marketplace, new opportunities and threats to the business. The CEO should be the ultimate authority on the state of the business, as she is responsible for running it day-to-day in the current business climate. She should be the best source of information for the Board. Her credibility is key. 

4. Be a Good Leader.

A CEO is accountable to the Board Members, but she must also be a good leader internally. I have seen employees complain about their CEOs to the Board when the CEO’s leadership skills are questioned. Occasionally, these complaints have resulted in the ousting of the CEO.

5. Remember Your Stakeholders. 

The stakeholders of a corporation are its shareholders. Ultimately, that is who owns the company and who employs the CEO. A talented CEO keeps the shareholders in mind when making decisions. Is it right for the stakeholders to take a gamble on an opportunity with a potential for a huge payoff? Or is it best for the shareholders to keep the status quo? A CEO must keep in mind her true constituents, so to speak.

6. Use the Board as a Panel of Advisors. 

The monthly Board meeting can be more than just a placeholder. These Board Members have stake in the Company, want it to do well, and often are significant shareholders. For a variety of reasons, the Board wants the company to succeed spectacularly. And each of the Members of the Board brings with him his own set of talents and skills, which the CEO can rely upon when seeking advice and approval.

For more interesting articles and topics like this, continue to follow the Human Resources on Your Side blog or click below to contact the Goosmann Law Firm with any questions or concerns.

You can also visit one of our four convenient locations in Sioux City, Iowa; Spencer, Iowa; Sioux Falls, South Dakota; and Dakota Dunes, South Dakota.


Subscribe Our Blog

DISCLAIMER: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. By visiting this website, blog, or post you understand that there is no attorney client relationship between you and the Goosmann Law Firm attorneys and website publisher. No information contained in this post should be construed as legal advice from Goosmann Law Firm, PLC, or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.