Executive Committee Vs Board of Directors

An executive committee is composed of board members with close leadership connections who meet regularly to discuss pressing concerns that affect the company. They make decisions on behalf of the entire board and determine the strategic direction. They also serve as an intermediary between the CEO and the board. An executive committee can be an effective solution for businesses which have many repetitive issues, require immediate decision-making on crucial issues or don’t wish to wait until their entire board is seated.

A good executive committee should include senior executives and leaders from other committees. Typically, the chairperson of the board serves on the executive committee, too. They are the ones in charge of the agenda of the committee and ensure that all committee and board activities are in line with the company’s goals. This person will also appoint committee chairs and act as the board spokesperson. The number of members on the executive committee will vary from one organization to another organization. However, the board’s bylaws should clearly state who is part of this committee. Research shows that a seven-member committee is the best size to make the most effective decisions.

The executive committee is responsible to establish governance practices and making strategic decisions at a high level and giving supervision to management. They also take the charge of training for board members and development. Depending on the size, the committee may meet monthly or quarterly basis, or on an as needed basis.

While an executive board is an excellent tool for many non-profit organizations, it’s certainly not a universal approach to governance of boards. If your board isn’t large or see page https://boardroomsupply.com/the-best-virtual-data-room/ you have a thriving board of directors who work effectively without an executive committee, then you might discover that this structure isn’t the best fit for your business.