Executive Committee Vs Board of Directors

An executive committee is comprised of board members with close leadership connections who meet to discuss urgent issues that impact the organization. They make decisions on behalf of the full board and shape strategic direction. They also serve as a bridge between the board of directors and the CEO. An executive committee is an ideal solution for companies that have a number of repetitive issues, require urgent action on crucial questions, or don’t want wait until the entire board can meet.

A well-functioning executive committee will comprise top executives and leaders of other committees. Typically, the chairperson of the board is on the executive committee too. They should be in charge of the agenda of the committee and ensure that all committee and board activities are in line with business’s objectives. The person appointed by the committee will also be the committee chairs and act as the spokesperson for the board. The number of members of the executive committee may differ between organizations. The bylaws of the board should clearly state who will be on the committee. According to research, a committee with seven members is the best size for optimal decision-making.

The executive committee is responsible of establishing the governance standards and taking strategic decisions at a high level and providing oversight to management. They are also responsible for the training and development of board members. Depending on the size of the committee they may meet monthly, quarterly, or on a regular basis.

Although an executive committee is an excellent tool for many non-profit organizations, it’s certainly not an all-inclusive approach to governance of boards. You might not boardroomsupply.com require an executive committee in the case of a small board or if you’ve got a board of directors who are able to function without one.