CFP Board’s Board of Directors (Board) is accountable for CFP Board’s success and responsible for its governance. The Board is composed of individuals with varied backgrounds relevant to CFP Board’s mission and diverse stakeholder interests, with a majority of Board members required to hold CFP® certification. As with many certification bodies, election to the Board is decided by an annual vote of the Board, with candidates selected by the Board’s Nominating Committee from applicants who indicate interest in serving. Board members are volunteers who serve four-year terms, and each year the Board assigns leadership to an individual who is appointed Chair.
The Board establishes policies through CFP Board’s Bylaws, Mission and Objectives, and it charges CFP Board’s staff to conduct activities within the parameters set by those policies. The Board has responsibility for ongoing monitoring and evaluation of the organization’s activities and the performance of the Chief Executive Officer, who is accountable for ensuring the business plan is implemented within prudent and ethical limitations set by the Board.
CFP Board governance policies outline the dynamics of the Board’s relationship to staff and the Board’s delegation and monitoring responsibilities. The Board determines what authority it will hold and what authority it will delegate. The method of delegation is a formal, circular process that includes clear roles and accountabilities. First, the Board defines outcomes to be achieved. Next, the Board defines the boundaries of ethical and prudent operational behaviors and conditions in policy, which serve as the Executive Limitations. Then the Board assigns these expectations (outcomes and boundaries as defined in policy) to the CEO and formally and rigorously monitors the CEO’s performance against those expectations.