An executive committee is made up of board members with close leadership connections who meet to discuss urgent issues that affect the company. They make decisions for the entire board and establish the direction for the organization’s strategic plan. They also serve as a bridge between the CEO and the board. Executive committees are an ideal solution for companies that have a number of repetitive issues, require immediate action on critical issues or don’t wish to wait until the entire board can convene.
An effective executive committee should include senior executives and leaders from other committees. Typically the chairperson of the board serves on the executive committee, too. They are responsible for the agenda of the committee and ensure that all board and committee activities are aligned with the goals of the company. This person will also appoint committee chairs and serve as the board spokesperson. The number of people on the executive committee may differ between organizations. The bylaws of the board must clearly specify who will sit on the committee. According to research, a group of seven members is the best size for optimal decision-making.
The executive committee is accountable for establishing governance standards, making high-level strategic decisions and providing oversight to management. They also charge of training for board members and development. Based on the size of the group the committee can meet monthly and quarterly or as required.
While an executive committee is a great tool for many non-profits, it’s not a universal approach to governance of boards. If your board is small or you have a strong board of directors working effectively without an executive committee, then you might realize that this kind of structure isn’t needed for your organization.
