Executive Committee Vs Board of Directors

An executive committee is an assembly of board members with close leadership connections and meet to discuss issues that affect the company. They make decisions on behalf of the whole board and shape strategic direction. They also serve as an intermediary between the board and the CEO. Executive committees are an ideal solution for companies that have a number of repetitive issues and require immediate action on urgent issues, or don’t want to wait until the entire board can convene.

A successful executive committee will comprise top executives and the heads of other committees. Typically the chairperson of the board will serve on the executive committee, too. They are the ones responsible for the agenda for the committee and ensure that all board and committee activities are aligned with the business’s objectives. The person appointed by the committee will also be the committee chairs and act as the board’s spokesperson. The number of members on the executive committee can vary between organizations. The bylaws of the board must clearly state who will be on the committee. According to research, a committee with seven members is the optimal size for optimal decision-making.

The executive committee is responsible for establishing governance policies and taking strategic high-level decisions and providing supervision to management. They also role of directing board member training and development. Based on the size of the committee they might meet monthly, quarterly or on a regular basis.

While an executive board is an effective tool for many nonprofits, it’s definitely not a universal approach to board governance. If your board isn’t large or you have a solid board of directors that works effectively without an executive committee, then you might find that this structure isn’t needed for your organization.

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