The Study On The System Of The Board Of Directors' Performance Evaluation

According to the performance evaluation, the paper analyzes the basis, method, index and procedure of the board of directors' performance evaluation and structures the system of the board of directors' performance evaluation by the normative analysis, comparative analysis and inductive method.The performance evaluation of the boards is a significant task and an important direction of the reform in the board of directors. On one hand, it can clear the duty of directors and the board of directors, and improves the work efficiency to evaluate the performance of the directors. On the other hand, the directors' salary will base on the system of the board of directors' performance evaluation. Furthermore, the performance evaluation can give some investment advice for outside investors. Therefore, the system construction of the board of directors' performance evaluation has an important practical significance.Firstly, the paper analyzes the practice on the board of directors' performance evaluation. Secondly, the paper analyzes the key problems about it, points out the basis, compares and analyzes the methods, gives the seven steps about construction on the index system and the six procedures on the board of directors' performance evaluation. On the basis, the paper recognizes that the performance evaluation about the board of directors can be formed by the three parts: the performance about the members of the board of directors, the performance about subprime committee of the board of directors, the performance about the board of directors. Base on the self-evaluation, others-evaluation and the results of the work of the board of directors, the paper measures the performance of members of the boards. According to the responsibilities, the paper establishes the index system and gives the matching weights. For the performance of the subprime committee, the paper evaluates it by the 3 integration. And by changing the balanced score card properly, the paper evaluates the performance of the board of directors. At last, the paper completes the evaluation by the weighted score of the three parts. By the comparison and analysis on the methods, indexes, and procedures of the performance evaluation in each part, the system has been formed.Finally, the paper makes a simulation with the performance evaluation about subprime committee of the board of directors as an example. Firstly, the evaluation subjects and methods are determined. Secondly, each evaluation method and various indexes weights are confirmed. Thirdly, the evaluation results are rated. And eventually, the score of performance evaluation about the subprime committee is got through a series of calculation. Therefore, according to the simulation, it can be concluded that it's feasible about the performance evaluation of subprime committee. Finally, the conclusion has been got that the performance evaluation system of the board of directors is feasible for enterprises, and the system has a certain reference significance for the enterprise' performance evaluation of the board of directors.