The Role of Chairs and Vice-Chairs
This summary highlights the responsibilities and significance of these roles in the governance of public pension boards.
1. Appointment and Election
The process for appointing or electing the Chair and Vice-Chair varies by system and jurisdiction and is sometimes governed by statutes. In cases where board members elect the Chair and Vice Chair, they usually serve at the pleasure of the board, and their terms may be fixed. The Chair presides over board meetings, while the Vice-Chair steps in when the Chair is absent. In the event of a vacancy, the Chair typically appoints a successor, sometimes with input from the Governance or Nominating Committee.
2. Major Duties of the Chair
The Chair has seven key responsibilities, the most important of which is presiding over board meetings. This includes ensuring that the business of the board is conducted efficiently, discussions are productive, and meetings are held in compliance with relevant laws and policies. Additionally, the Chair plays a leadership role in setting the board’s strategy and policy agenda in collaboration with the Chief Executive and other board members. Another key duty is overseeing the evaluation of the Chief Executive’s performance, while ensuring the Chair does not overstep into the Chief Executive’s operational responsibilities. The Chair also monitors board performance, coordinates between committees, ensures the board receives adequate materials in a timely manner, and acts as the board’s spokesperson.
3. Characteristics of an Effective Chair
An effective Chair needs five main qualities: maintaining order, finding common ground, facilitating problem-solving, being patient and diplomatic, and having emotional intelligence. The Chair should be knowledgeable of the board's rules, encourage participation from all members, and ensure that the board focuses on important long-term issues rather than immediate concerns. Additionally, the Chair must skillfully manage difficult board members and promote cohesive decision-making.
4. Vice-Chair’s Role:
The Vice-Chair acts in the Chair’s absence, assists with oversight of board responsibilities, and may take on other duties, such as presiding over board self-assessments or assisting with agenda development. In many systems, the Vice-Chair position serves as a developmental role for future Chairs, helping to ensure a smooth succession process.
5. Chair’s Leadership
Effective leadership from the Chair ensures that the board functions efficiently, deliberates on critical issues, and maintains a balance between diverse opinions while achieving a unified direction. The Chair is also responsible for fostering a positive working relationship with the Chief Executive and maintaining key stakeholder relationships as an ambassador for the board.
In conclusion, the Chair and Vice-Chair hold pivotal roles in guiding the board through decision-making processes, setting policies, and maintaining a collaborative and effective governance structure. Their leadership is essential to the success of the board’s fiduciary responsibilities.