Executive Committee Vs Board of Directors

An executive committee is a group composed of board members who enjoy close leadership ties and convene to discuss pressing issues that affect the business. They make decisions for the entire board, and set the direction of the company’s strategy. They also act as a liaison between the board of directors and the CEO. Executive committees can be a good solution for companies which have many routine issues, require immediate actions on crucial issues, or don’t want to wait until the entire board is seated.

An effective executive committee should include senior executives as well as leaders from other committees. The Chairperson of the Board is usually also an executive committee. They are in charge of the agenda for the committee and ensure that all board and committee activities are aligned with the goals of the business. The person appointed by the committee will also be the committee chairs and act as the spokesperson for the board. The number of members in the executive committee can vary between organizations. The bylaws of the board should clearly define who will be members of this committee. According to research, a committee of seven members is the optimal size for optimal decision-making.

The executive committee is in charge of establishing governance policies, taking high-level strategic decision and ensuring oversight to the management. They also charge of training for board members and development. Depending on the size of the committee they More hints could be scheduled to meet monthly, quarterly or on a regular basis.

While an executive committee can be an effective tool for many nonprofits, it’s definitely not a one-size-fits-all approach to board governance. You may not need an executive committee if your board is small, or if you have an executive committee that can do well without one.