An executive committee is an association of board members who have close leadership ties and convene to discuss issues that affect the organization. They make decisions for the entire board and set the direction of the company’s strategy. They also act as an intermediary between the board and the CEO. Executive committees are the ideal solution for businesses with a lot of repetitive issues need immediate action on urgent issues or don’t wish to wait until the entire board can convene.
A well-functioning executive committee will comprise high-level executives as well as the heads of other committees. The Chairperson of the Board is typically also an executive committee. They should be in charge of setting the agenda for the committee and ensure that all board and committee actions are in line with goals of the business. 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 differ from one organization to the next organization. The bylaws of the board must clearly define who is members of this committee. According to research, a committee comprising seven members is the optimal size for optimal decision-making.
The executive committee is in charge of establishing the governance standards and taking strategic decisions at a high level and providing oversight to the management. They also have responsibility for the training and development of board members. Depending on the size of the committee they might meet quarterly, monthly or on a regular basis.
While an executive committee can be an excellent tool for a lot of non-profit organizations, it’s certainly not an all-encompassing method of governance for boards. If your board isn’t large or you have a solid board of directors that works effectively without an executive committee, then you might find that this type of structure isn’t needed for your organization.