Sage advice not just for CEOs but for anyone leading a team. Direct, constructive feedback is a great way to encourage open communication. Give early, give often.
I recently joined a team where the leader is very good about giving honest, no-BS feedback while being polite and respectful. It rubs off on everyone on the team. It might seem like a subtle difference, but this improves everyone's attitudes vs. those with a less-experienced leader. Having a team in which each member can give/receive feedback well makes the group experience _much_ better.