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ACCA Strategic Professional · Strategic Business Leader · The board of directors

Tern Retail's evaluation recommends that the chair's own performance be assessed. Which party is best placed to lead that assessment so that it is not conflicted?

The senior independent director is best placed to lead the chair's appraisal, gathering views from other directors. That role is independent of the chair and exists to provide an alternative channel for concerns. The CEO is conflicted, self-assessment lacks objectivity, and investor relations staff are not part of the board.

  1. AThe chief executive officer, who works most closely with the chair
  2. BThe senior independent director, after gathering views from the other directorsCorrect
  3. CThe chair, through a self-assessment form
  4. DThe head of investor relations

Explanation

The senior independent director acts as a sounding board for other directors and is independent of the chair, so is suited to lead the appraisal after collecting views. The CEO is subordinate to the board and conflicted. A self-assessment lacks objectivity. Investor relations staff are executives without board standing.

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