TITLE:
Appraising the Performance of Chief Executive Officers of Banking Institutions in Auckland
AUTHORS:
Theophilus Azungah, Adombilla Baba Blonch, Joana Rita Tembil
KEYWORDS:
Chief Executive, Performance Appraisal, Bank, Board of Directors, Auckland
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.7 No.7,
July
31,
2019
ABSTRACT: The financial crunch of 2008/9 occasioning the collapse of companies and
financial institutions worldwide, sparked calls for transparency and accountability
in the dealings of corporate bodies. It engendered more interests on issues
concerning corporate governance among researchers, academicians and
practitioners. It is worth noting that Chief Executive Officers (CEOs) are
usually appointed and entrusted with the responsibility of managing corporate
affairs on behalf of shareholders. Dual interests consequently emerge following
the appointment of a CEO comprising the interest of shareholders and that of
the CEO with a probability that the self-interests of CEO might run counter to
the general interest of shareholders. As a result, many firms are actively
incorporating into their corporate governance provisions, strategies to control
executives’ performance. A strategic tool used in influencing the performance
of chief executives towards the desired goals of an organisation is performance
appraisal, yet there is little consideration for executive appraisal in the
academic literature. This study seeks to complement the dearth of scholarly
conversation on executive appraisal using a qualitative single case study approach
drawing on an interview with a Chief Executive Officer of an international bank
based in New Zealand. Employing stakeholder theory as a theoretical lens, the
findings suggest that appraising CEOs can be instrumental in building good
relationships, sustain organisation’s performance and enhance
their career advancement.