Determine duties & expectations for the CEO

When a new public sector organization is established, the duties and expectations of the CEO must be determined by the Board of Directors. In public post-secondary institutions, the CEO is referred to as the President.

The board must:

• Create a job description
• Develop performance expectations
• Establish formal performance evaluations
• Determine compensation

Job description

The CEO’s job description must:

• Clearly describe job duties and responsibilities
• Establish a clear division of duties between the CEO and the board
• Be explicit about the CEO’s accountability to the board
• Include a requirement for regular contact with the government

The job description must be available to the public.

Performance expectations

The board must provide performance expectations to the CEO. These are communicated in writing to the CEO every year. These expectations form the basis for the performance evaluation.

Performance evaluation

The board must establish a formal process to evaluate the CEO’s performance each year. This is an opportunity for the board to provide feedback in an open and professional manner. The evaluation is based on the job description and the annual performance expectations.

Compensation

The total compensation the CEO receives must be disclosed annually to the public in accordance with the executive compensation disclosure guidelines. Total compensation includes:

• Base salary
• Holdback, statutory and health benefits
• Pension contributions
• Other payments like leave payouts, travel expenses or retirement allowance

CEO compensation is typically tied to performance and is measured against written performance expectations.