An executive committee is made up of board members with close leadership connections who meet regularly to discuss pressing concerns that affect the company. They make decisions for the entire board and set the direction of the company’s strategy. They also act as an intermediary between the CEO and the board. An executive committee is an ideal solution for companies which have a lot of routine issues and require immediate action on important issues or don’t wish to wait until the entire board is able to meet.
A good executive committee will include senior executives and 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 of the committee and ensure that all board and committee activities are in line with company’s goals. The person who is appointed will also select committee chairs and serve as the board 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 state who will be on this committee. Research suggests that a seven-member committee is the most effective size for optimal www.boardroomsupply.com/how-to-run-a-board-meeting/ decision making.
The executive committee is accountable for establishing governance policies and making strategic decisions at a high level and providing oversight to management. They also take the lead on board member training and development. Depending on the size the committee can meet on a monthly or quarterly, or on a required.
While an executive committee can be an effective tool for many nonprofits, it’s not an all-inclusive approach to governance of boards. You may not need an executive committee if your board is small, or if you have a board of directors that operate without one.