An executive committee is comprised of board members with close leadership ties who meet regularly to discuss pressing issues that affect the organization. They make decisions for the entire board and set the direction of the company’s strategy. They also serve as an intermediary between the board and the CEO. An executive committee can be a good solution for companies that face a number of routine issues, require immediate decisions on critical issues or don’t wish to wait see page https://boardroomsupply.com/the-best-virtual-data-room/ until their entire board is seated.
A great executive committee will include senior executives and other leaders from other committees. The chairman of the Board is usually also a member of the executive committee. They should be responsible for the agenda for the committee and ensure that all board and committee activities are in line with the company’s goals. The person who is appointed will also select committee chairs and serve as the board’s spokesperson. The number of members of the executive committee will vary from one organization to another organization. The bylaws of the board should clearly specify who will sit members of this committee. Research suggests that a seven-member committee is the ideal size to make the most effective decisions.
The executive committee is in charge of establishing governance procedures making strategic decisions at a high-level and ensuring oversight to the management. They also take the role of directing board member training and development. Based on the size of the group the committee could meet monthly, quarterly, or as necessary.
Although an executive committee could be a valuable tool for many non-profits and organizations, it is not a solution that fits all. If your board isn’t large or you have a thriving board of directors that operates effectively without an executive committee, you may discover that this structure isn’t the best fit for your business.