Executive Committee Vs Board of Directors

An executive committee is an assembly of board members with close leadership ties and convene to address urgent matters that impact the company. They make decisions for the entire board and provide the direction of the company’s strategy. They also serve as a bridge between the board of directors and the CEO. Executive committees are an ideal solution for companies that have a number of repetitive issues, require immediate action on critical issues or don’t wish to wait until the entire board is able to convene.

An effective executive committee will comprise top executives and members of other committees. The chairperson of the Board is usually also an executive committee. They are responsible for the agenda of the committee and ensure that all board and committee actions are in line with goals of the company. The person appointed by the committee will also be the committee chairs and serve as the spokesperson for the board. The number of people on the executive committee will differ between organizations. The bylaws of the board must clearly define who is on the committee. According to research, a group of seven members is the ideal size for optimal decision-making.

The executive committee is accountable for establishing governance practices and taking strategic high-level decisions and providing oversight to management. They also take the responsibility for training of board members and development. Based on the size of the committee they might be scheduled to meet monthly, quarterly or on https://boardroomsupply.com/how-to-run-a-board-meeting/ an as-needed basis.

While an executive board is an excellent tool for a lot of nonprofits, it’s not an all-encompassing approach to governance of boards. If your board is small or you have a robust board of directors that operates effectively without an executive committee, you may realize that this kind of structure isn’t the best fit for your business.