Why executive accountability matters
Investors are no longer passive when company performance falters. A recent example is Boaz Weinstein’s Saba Capital pushing for board changes at seven UK investment trusts due to chronic underperformance (Financial Times). While board overhauls are drastic, they’re becoming more common due to weak executive accountability.
A tribunal recently awarded £1.2 million to an executive replaced while on sick leave for breast cancer (PM Daily, 29 May 2025). This case highlights the legal, reputational, and emotional risks of mishandling executive performance.
Senior leaders shape an organisation’s culture, strategy, and long-term value. Yet underperformance at this level often goes unaddressed—hidden by complexity, status, or legacy. When leadership fails, the damage is far-reaching.
The Modern Business Challenge
Today’s volatile environment—marked by geopolitical tensions, digital disruption, ESG demands, and workforce shifts—requires sharper execution. Yet many organisations still rely on outdated tools like KPIs and appraisals, leading to misalignment and costly mistakes.
Start with Clear Organisational Aims
To measure executive effectiveness, organisations must first define:
· What they want to achieve
· How they want to achieve it
· When they want to achieve it
These goals must align with investor expectations. Once set, the executive board should define the structure, strategy, and culture needed to deliver them.
Building a Performance-Driven Culture
Success requires:
· Clear, achievable targets for each executive
· Regular reviews and outcome tracking
· Transparent performance data
· 360-degree feedback (including staff, customers, and investors)
This fosters trust and creates a dynamic, accountable environment.
From Insight to Action
When everyone understands the organisation’s goals and their role in achieving them, it becomes easier to identify needs in:
· Skills and training
· Recruitment
· Investment (e.g. IT)
· Reward and recognition
Berry Smith’s Executive Performance Solution (EPS)
Berry Smith has developed a comprehensive Executive Performance Solution (EPS) to address the leadership accountability gap. It’s a practical, legally robust framework designed to bring structure and clarity to executive oversight.
The goal is simple: to bring structure and accountability to an area too often governed by assumption. That means replacing vague expectations with clearly defined performance standards, and shifting from passive, reactive oversight to active, strategic leadership enablement. It’s time to move beyond outdated norms and challenge the status quo.
Key Features of the EPS
· Comprehensive – Spanning the full executive employment lifecycle: recruitment, contracting, onboarding, continuous performance management, and exit.
· Integrated – Aligns corporate law, equity arrangements, and directors’ duties in a single, coherent framework.
· Proactive and Responsive – Enables organisations to anticipate challenges and respond decisively to emerging performance risks.
· Risk-Focused – Helps identify and manage legal, reputational, and operational risks linked to executive underperformance.
Meet the Experts Behind EPS
· Sarah Alford: a partner at Berry Smith and the Head of the Employment Law and HR team. Sarah has extensive experience with both contentious and non contentious matters. She holds a Master’s in Business Administration and offers a unique approach that provides outstanding client support with commercial insightfulness.
· Robyn Davies: To strengthen the EPS team, Sarah is partnering with Robyn Davies, an experienced HR Director and a recognised leader in organisational performance and innovation. He is a Fellow of the Chartered Institute of Personnel and Development (CIPD), A Freeman of the Company of HR Professionals, and holds a degree in Occupational Psychology and an MBA from Cardiff University.
Let’s Talk
If executive performance is a concern in your organisation, we’d welcome a confidential conversation.
📧 Email: salford@berrysmith.com 📞 Phone: 02920 345511