Executive Committee Vs Board of Directors

An executive committee consists of board members with close leadership connections who meet regularly to discuss pressing issues that affect the company. They make decisions for the entire board and establish the direction of the company’s strategy. They also act as a bridge between the CEO and the board. An executive committee is beneficial for companies which have many repetitive issues, need immediate decisions on critical issues or don’t want to wait until the entire board meets.

A good executive committee will include senior executives and other leaders from other committees. Typically, the chairman of the board sits on the executive committee as well. They are the ones who decide on the agenda for the committee and ensure that the activities of the board and committee coincide with the goals of the company. This person will also be the spokesperson for the board and appoint committee chairpersons. The number of people on the executive committee may differ from one organization to another. However, the bylaws of the board should clearly state who is part of this committee. Research suggests that a seven member committee is https://boardroomsupply.com/how-to-run-a-board-meeting/ the most effective size for making the best decisions.

The executive committee is accountable for establishing governance practices, making high-level strategic decisions and providing oversight to management. They also lead on board member training and development. Based on the size of the group the committee could meet monthly, quarterly, or as necessary.

While an executive committee can be a useful tool for many nonprofits and organizations, it is not a solution that works for all. You may not need an executive committee for a board that is small or if you have an executive committee that can work well without one.