FROM: Stacey Barnier, Chief Human Resources Officer
SUBJECT: Performance Evaluation Process for Chief Executive Officer and Chief Counsel
RECOMMENDATION:
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Recommend the Board update the framework for the performance evaluation process for the Chief Executive Officer and Chief Counsel.
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BACKGROUND:
At the May 26, 2026 Executive Committee Meeting, staff was given direction to present an updated evaluation framework for the Chief Counsel and Chief Executive Officer that allows the Board to consider staff feedback prior to their evaluation of the Chief Counsel and Chief Executive Officer.
In accordance with their revised employment agreements adopted in 2024, the CEO and Chief Counsel may be entitled to a merit bonus payment of up to ten percent (10%) of base salary based on performance, achievement of goals, and financial condition of SBCERA, at the Board’s discretion, following Employee’s annual performance review which shall occur in the March to June time frame each year. In accordance with the SBCERA Staff Performance Evaluation and Planning (PEP) Policy (018), the format and framework for completion of the CEO’s or Chief Counsel’s performance evaluation shall be reviewed with the Board annually.
In preparation for the 2027 evaluations and based on feedback during the 2026 process that some board members felt like they didn’t have enough insight to fairly assess the CEO and Chief Counsel in some areas.
To help the board gather this insight, staff recommends that the Executive Committee review the complete set of evaluation documents (Attached as Exhibits A-D) to ensure that the categories fairly reflect what the Board considers important for the purposes of evaluating the CEO and Chief Counsel.
Current Review Categories for the CEO
1. Leadership
2. Board Relations
3. Communications
4. Management
5. Financial Responsibility
6. Overall
Using a rating scale of Excellent, Good, Satisfactory, and Needs Improvement
Current Review Categories for the Chief Counsel
1. Leadership
2. Board Relations
3. Communications
4. Legal Oversight
5. Disability Unit Management
6. Overall
Using a rating scale of Excellent, Good, Satisfactory, and Needs Improvement
For feedback from staff, the CEO is evaluated by her direct reports on Leadership, Communications, and Management using the same rating scale as the Board. The Chief Counsel receives staff feedback only from the department Chiefs on Legal Oversight, Leadership, and Communications using the same rating scale as the Board.
Potential Changes for Future Evaluations
1. Add a section for goal progress and achievement for both the CEO and Chief Counsel.
2. Remove the specific reference to the Disability Unit Management category for the Chief Counsel and change it to Management to incorporate the management of staff overall as opposed to only one specific unit.
3. Incorporate survey feedback from direct reports for both the CEO and Chief Counsel, and provide such survey feedback to both individuals (and the Board) to include their observations in self-evaluations and discussions with the Board. For the Chief Counsel, only seek senior leadership team feedback if the Board desires to gather that information.
4. Seek an independent software or evaluation service that can meet the needs of the Board in conducting the annual evaluations.
Employee Engagement Survey
Separately, as part of the Triennial Strategic Plan, staff already planned to conduct an all-hands employee engagement survey in the November/December 2026 timeframe. We intend to engage a third party to assist us with conducting that survey and evaluating the results, using this as a baseline for future surveys. The results of the survey will be presented to the Board, and could be incorporated for the Board’s consideration in the annual evaluations and merit bonuses.
BUDGET IMPACT:
Costs for this item are included in the current year administrative and/or non-administrative budget.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Quality Employer and Workplace
STAFF CONTACT:
Stacey Barnier
ATTACHMENTS:
Exhibit A: Chief Executive Officer Performance Evaluation Framework
Exhibit B: Chief Executive Officer Direct Reports Performance Evaluation Framework
Exhibit C: Chief Counsel Performance Evaluation Framework
Exhibit D: Chief Counsel Senior Leadership Team Evaluation Performance