Executive Committee Vs Board of Directors

An executive committee is an assembly composed of board members who enjoy close leadership ties and convene to discuss urgent 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. An executive committee is an ideal solution for companies that have a number of repetitive issues need immediate action on urgent issues or don’t want to wait until the entire board can convene.

A well-functioning executive committee will include high level executives and members of other committees. Typically the chairperson of the board serves on the executive committee too. They are the ones in charge of the agenda of the committee and ensure that all board and committee activities are in line with the company’s goals. This person is also the spokesperson for the board and will also appoint committee chairpersons. The number of members in the executive committee will differ from one company to another. However, the bylaws of the board should clearly spell out who is part of the committee. According to research, a group of seven members is the best size for optimal decision-making.

The executive committee is accountable for establishing governance practices as well as making strategic decisions at the highest level and giving supervision to management. They also are responsible for the development and training of board members. Based on the size of the group, the committee may meet on a monthly and quarterly or as necessary.

While an executive committee can be a beneficial tool for many nonprofits and organizations but it’s not the best solution for all. If your board isn’t large or you have a robust board of directors who work effectively without an executive committee, you might realize that this kind of structure isn’t necessary for your particular organization.

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