Executive Committee Vs Board of Directors
An executive committee is comprised of board members with close leadership connections who meet to discuss urgent issues that affect the company. They make decisions on behalf of the full board and set the direction for strategic planning. They also serve as a liaison between the board of directors and the CEO. Executive committees are a good solution for organizations that have many repetitive matters need immediate action on critical issues or don’t want to wait until the entire board is able to convene.
An effective executive committee will comprise high-level executives as well as members of other committees. The chairperson of the Board is usually also an executive committee. They are responsible for the agenda of the committee and ensure that all board and committee activities are aligned with the business’s objectives. This person is also the spokesperson for the board, and will appoint chairpersons of the committee. The number of members in the executive committee will differ between organizations. However, the board’s bylaws should clearly spell out who will be part of the committee. According to research, a group of seven members is the optimal size for optimal decision-making.
The executive committee is responsible for establishing governance policies and making strategic decisions at a high level and giving supervision to management. They also are responsible for the development and training of board members. Depending on the size of the committee, they could meet monthly, quarterly, or on a regular basis.
While an executive committee is an excellent tool for many non-profits, it’s not an all-inclusive approach to board governance. You might not require an executive committee for a board that is small or you have a board of directors that are able to function without one.
