Key Takeaways from Our CEO Evaluation & Compensation Event
Catapult recently hosted a coffee and conversation event at on a topic at the very core of board governance: the power of strategic CEO evaluation and compensation.
Our speakers, Catapult Co-President Marsha Koelmel and Practice Leader for Compensation Consulting Julia Culkin-Jacobia unpacked why evaluation and compensation aren’t just annual “to-do” items — they are strategic levers for driving performance, reinforcing culture, and ensuring long-term organizational health.
To capture the spirit of the conversation, here’s a quick Q&A-style recap of key takeaways.
Q: Why does CEO evaluation matter so much for Boards?
Marsha: Hiring the CEO is just the beginning. Boards have an ongoing responsibility to ensure the CEO is aligned with the Board on strategy, supported in their role, and held accountable to clear, measurable goals. A strong evaluation process strengthens communication and trust, clarifies expectations, and creates a roadmap for success. Yet, only 52% of boards say they have an effective evaluation process in place — a gap that can have real consequences.
Q: Isn’t CEO compensation just about paying competitively?
Julia: It’s about much more than that. Compensation is one of the Board’s most strategic tools. Done well, it directly links to performance outcomes, supports retention, reinforces values, and encourages the right kind of risk-taking. Boards are responsible for setting base pay, designing incentive plans, and ensuring those rewards align with results — financial, operational, and strategic — while maintaining transparency with stakeholders.
Q: What are some common pitfalls Boards should avoid?
Marsha:
- Setting vague success metrics.
- Limiting feedback to an annual, one-way review.
- Avoiding tough conversations due to discomfort or lack of knowledge.
- Not engaging an independent advisor to ensure objectivity and market competitiveness.
Julia: I’d add that Boards should regularly review and update both the evaluation process and the compensation philosophy. If these are left untouched for years, they can quickly become misaligned with market reality and organizational strategy.
Q: How should Boards connect evaluation and compensation?
Marsha: Think of them as two sides of the same coin. The evaluation process should define what success looks like, and the compensation plan should reward achieving that success.
Julia: That means setting goals up front, tying pay to strategic outcomes, and explaining not just if goals were met but how. Transparency is critical — to the CEO, to the Board, and often to stakeholders or funders.
Q: What does a high-impact CEO evaluation look like?
Marsha:
- A Board committee that co-creates success metrics with the CEO before the year begins.
- Regular check-ins at Board meetings to discuss progress and roadblocks.
- Feedback that’s both constructive and supportive, shared by the Board Chair or a small group.
- The CEO’s acknowledgment of that feedback and commitment to continuous improvement.
Q: Any real-world examples of this in action?
Marsha: We shared the story of a client whose Board had no evaluation process in place until a sudden leadership change revealed just how risky that was. Working together, we built an evaluation philosophy, defined success metrics, and tied them to compensation. The result? Better alignment, more engaged governance, and a stronger CEO–Board partnership.
Q: What’s the bottom line for Boards and CEOs?
Julia:
- For Boards: Better insight, more confident governance, and defensible compensation decisions.
- For CEOs: Clear expectations, meaningful feedback, and rewards that reflect results.
Q: How can Catapult help?
We partner with Boards to:
- Design and facilitate evaluation processes.
- Develop meaningful performance metrics.
- Align compensation strategies with organizational goals.
- Benchmark pay and ensure transparency.
- Provide governance coaching and tools.
If your Board is ready to elevate its leadership oversight, strengthen alignment with your CEO, and ensure your compensation strategy drives results, Catapult can help.
Let’s Talk.
Return to all posts