A moderator is a leader of a forum. A good moderator is one that shows that he cares about the forum and the members within it. A good moderator does his best to promote activity within his forum, because he cares. A good moderator creates discussions and engages with his sub-community in discussions that they create.
When I was a higher staff, I was obsessed with moderator management. I would want to be the one to fire mods that we chose to fire. I would want to be the one to send staff warnings. I would want to be the one to bring up someone for promotions, and to offer them a position on the team. I wanted every moderator to fit my ideal moderator, and if they didn't, I wanted them fired. And, frankly, most of them were.