A key element of the corporate governance structure is reviewing the performance of all Chief Executive Officers. All public sector entities, including State Owned Corporations, should ensure there is regular review of the Chief Executive Officer’s performance.

The State Plan outlines new responsibilities for Lead Chief Executive Officers (CEOs) and the attached performance agreement guidelines and template have been updated to reflect this change. They highlight specific priorities and links between government priorities, agency achievements and personal performance.

From 2008, Lead CEOs will have their annual performance agreement meeting with the Director General, Department of Premier and Cabinet, who will coordinate feedback from their Minister/s. The Premier will have input into these annual reviews and sign off on their agreement. Ministers will maintain ongoing day-to-day CEO performance management on agency specific issues.

While the guidelines and template apply specifically to Lead CEOs, all other Chief Executives are encouraged to use the revised template as a basis for their annual performance review and agreement with their Minister/s. CEOs of State Owned Corporations may adopt aspects that are relevant but should refer to CEO Contract Guidelines for Government Businesses (TPP 06-1) on requirements for SOC Boards and CEO performance agreements.

This Memorandum should be read with the following:

• Memorandum M2006-09 - Chief Executive Officer Performance Agreement Guidelines
• Memorandum M2006-10 - Improving Outcomes for Aboriginal People and their Communities
• Treasury Circular TC06/22 - Results and Services Plans (RSPs)
• The Strategic Management Framework.

This Memorandum replaces M99-05 Chief Executive Officer Performance Agreement Guidelines and supersedes M90-13 Performance Agreement Guidelines.

Attachments: CEO Performance Agreements Guidelines and CEO Performance Agreement template.

Morris Iemma MP
Premier