Executive Committee Vs Board of Directors
The board of directors is the company’s highest governing body. The board is accountable for the organization’s goals and the decision-making processes. The board of directors is comprised of senior leaders who are appointed or elected by members. The corporate constitution, bylaws and regulations from the government regulate the board of directors’ power, duties and responsibilities.
An executive committee is a smaller, more focused group that is closely linked to the executive leadership. They can meet on short notice to discuss urgent issues that impact the company and then bring these matters to the attention of the entire board. Depending on the company’s structure and bylaws the executive committee could be able to perform the same duties as the board of directors. Or it could have a smaller role.
The executive committee is generally composed of three members consisting of the chairperson, vice-chairperson and the treasurer. The chairperson is also the spokesperson and ensures that activities of the board and committee are in line with the company’s goals. The executive committee can also be an option if an organization requires quick action to tackle repetitive matters or controversial ideas, as the committee can be used to review and approve www.boardroomsupply.com/executive-committee-vs-board-of-directors/ these issues prior to bringing them before the board in its entirety.
It’s crucial, however to ensure that the committee doesn’t take on decision-making authority that is properly the responsibility of the entire board. Executive committees should have a clear outline of its charter, a clear method to delegate authority, and an internal set of checks and balances.
