Executive Committee Vs Board of Directors
An executive committee consists of board members with close leadership connections who meet to discuss urgent issues that affect the company. They make decisions on behalf of the entire board and determine the strategic direction. They also act as a bridge between the board of directors and the CEO. Executive committees can be an effective solution for businesses that have a lot of routine issues, require immediate action on important matters or don’t wish to wait until the entire board meets.
A good executive committee should include senior executives and other leaders from other committees. The chairperson of the Board is usually also a member of the executive committee. They are the ones who decide on the agenda for the committee and ensure that the activities of the board and committee align with the company’s objectives. This person will also be the spokesperson for the board and also choose committee chairpersons. The number of executive committee members will vary from one organization to another organization. The bylaws of the board must clearly define who will be members of this committee. According to research, a committee with seven members is the optimal size for optimal decision-making.
The executive committee is responsible for establishing governance policies, making high-level strategic decisions and providing supervision to management. They also take the responsibility for training of board members and development. Based on the size of the committee they could meet monthly, quarterly or on an as-needed basis.
Although an executive committee can be an effective tool for many non-profits and organizations but it’s not a solution that is suitable for all. If your board is small or you have a strong board of directors who work effectively without an executive committee, you might find that this structure isn’t necessary for your particular organization.