The effectiveness of a board chair is best evaluated by:

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Question: The effectiveness of a board chair is best evaluated by:

Option 1: 'referring to board self-assessment report' — Relying solely on a board self-assessment can be helpful for identifying perceived issues, but it may suffer from bias, social desirability, or a lack of critical perspective. Self-assessments can underreport weaknesses or overstate strengths, making this a limited standalone measure of a chair’s effectiveness.

Option 2: 'assessing the quality of the directors on the board' — This approach focuses on governance outcomes and the overall functioning of the board, which are influenced by the chair’s leadership. By evaluating directors’ engagement, independence, expertise balance, and contribution, one can infer how effectively the chair facilitates board dynamics, decision-making, and accountability. This is a more holistic proxy for chair effectiveness because it links leadership to board performance.

Option 3: 'engaging in direct dialogue with directors' — Direct dialogue is a valuable leadership practice for transparency and relationship-building, but on its own it does not provide a comprehensive evaluation of the chair’s effectiveness. It may yield qualitative impressions or highlight specific issues, yet without considering broader board performance or feedback from multiple sources, it lacks the evaluative breadth needed for a robust assessment.

In sum, while each option has relevance to governance and leadership, Option 2 emphasizes an outcome-oriented view tied to how the board functions as a whole. This makes it the strongest indicator of chair effectiveness when used as part of a broader assessment framework, whereas the other options offer useful but narrower or less scalable insights.

FINA3401.13791.202610 Chapter 5 Governance Quiz

The effectiveness of a board chair is best evaluated by:

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