Executive Committee Vs Board of Directors
An executive committee is composed of board members with close leadership connections who meet to discuss urgent issues that impact the organization. They make decisions for the entire board and establish the strategic direction. They also act as a bridge between the board of directors and the CEO. Executive committees are an ideal solution for companies with a lot of repetitive issues that require immediate action on important issues, or don’t want to wait until the entire board is able to meet.
A good executive committee will include senior executives and leaders from other committees. The Chairperson of the Board is typically also an executive committee. They should take the lead in the agenda of the committee and ensure that the activities of the board and committee coincide with the goals of the company. This person is also the spokesperson for the board and also choose committee chairpersons. The number of executive committee members will vary from organization to organization. However, the bylaws of the board must clearly define who is part of this committee. According to research, a committee with seven members is a good size for optimal decision-making.
The executive committee is responsible of establishing the governance standards and taking strategic decisions at a https://boardroomsupply.com/how-to-run-a-board-meeting/ high level and providing oversight to management. They also take the charge of training for board members and development. Based on the size of the committee they might meet quarterly, monthly or on a regular basis.
Although an executive committee is an effective tool for many nonprofits, it’s definitely not an all-inclusive way to govern board members. You may not need an executive committee for a board that is small, or if you have a board of directors who are able to function without one.