Executive Committee Vs Board of Directors
An executive committee is a group of board members with close relationships with the leadership team and meet to discuss urgent issues that affect the organization. They make decisions for the entire board and provide the strategic direction. They also serve as an intermediary between the board and the CEO. An executive committee is beneficial for companies with a lot of repetitive issues, require immediate decision-making on crucial issues or don’t wish to wait until the entire board is seated.
An effective executive committee should include high level executives and leaders of other committees. Typically, the chairperson of the board will serve on the executive committee as well. They should lead on the agenda of the committee and ensure that all committee and board activities align with company goals. This person will also be the spokesperson for the board and also choose chairpersons of the committee. The number of members on the executive committee will vary from one organization to another organization. The bylaws of the board should clearly specify who will sit members of this committee. According to research, a committee with seven members is the ideal size for optimal decision-making.
The executive committee is accountable for establishing governance standards and taking strategic high-level decisions and providing supervision to management. They also charge of training for board members and development. Depending on the size the committee, it may meet on a monthly, quarterly, or as required.
While an executive committee can be an excellent tool for a lot of non-profit organizations, it’s certainly not an all-inclusive approach to governance of boards. There may not be a need for an executive committee for a board that is small or https://boardroomsupply.com/flexibility-with-digital-data-room/ you have an existing board of directors that operate without one.