MOST board chairmen would say they do track the performance of directors and that the ultimate appraisal is done by the shareholders when they re-elect or reject a director. The time for such subjective measures, however, is fast disappearing, as investors all around the world demand a more rigorous and transparent appraisal process.
Unfortunately, directors still seem reticent in adopting the formal appraisal. From their point of view, there are some valid difficulties in initiating director performance appraisals. The main obstacle remains the sensitivity of the issue.