Executive Committee Vs Board of Directors

An executive committee is a group comprised of board members that have close connections to leadership and meet to discuss urgent issues that affect the organization. They make decisions for the entire board and set the direction for the organization’s strategic plan. They also act as a link between the board of directors and the CEO. An executive committee is an ideal solution for companies that face a number of repetitive issues, need immediate decisions on critical issues or don’t want to wait until their entire board is seated.

An effective executive committee should include high level executives and leaders of other committees. Typically the chairperson of the board serves on the executive committee, too. They are the ones in charge of setting the agenda of the committee and ensure that all committee and board activities are aligned with the goals of the company. The person who is the spokesperson for the board will also be the spokesperson for the board and appoint chairpersons of the committee. The number of members on the executive committee will vary from one organization to another organization. However, the bylaws of the board should clearly spell out the members of this committee. Research has shown that a seven-member committee is the most effective size for optimal decision-making.

The executive committee is in charge of establishing governance policies and making high-level strategic decisions and ensuring oversight to the management. They are also accountable for the development and training of board members. Depending on the size the committee could meet monthly or quarterly basis, or on an as necessary.

Although an executive committee is an excellent tool for many non-profits, it’s not a one-size-fits-all way to govern board members. There may not be see page https://boardroomsupply.com/the-best-virtual-data-room/ a need for an executive committee for a board that is small, or if you have an executive committee that can do well without one.

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