An executive committee is an organization comprised of board members that have close relationships with the leadership team and meet to discuss pressing issues that affect the company. They make decisions on behalf of the entire board and boardroomsupply.com determine the strategic direction. They also serve as an intermediary between the board and the CEO. An executive committee could be an ideal solution for companies that have a lot of frequent issues, require urgent actions on crucial issues, or don’t want to wait until their entire board is seated.
An effective executive committee should include senior executives as well as leaders from other committees. Typically the chairman of the board sits on the executive committee too. They are the ones who decide on the agenda for the committee and ensure that all committee and board activities coincide with the goals of the company. This person will also be the spokesperson for the board and appoint committee chairpersons. The number of executive committee members will differ from one organization to the next organization. However, the board’s bylaws must clearly define the members of this committee. According to research, a committee of seven members is the best size for optimal decision-making.
The executive committee is responsible for establishing governance standards, making high-level strategic decisions and providing supervision to management. They are also responsible for the development and training of board members. Depending on the size of the committee, they may meet quarterly, monthly or on an as-needed basis.
While an executive committee may be a useful tool for a variety of nonprofits and organizations however, it’s not a solution that fits all. You might not require an executive committee if your board is small, or if you have an existing board of directors that do well without one.