Executive Committee Vs Board of Directors

A board of directors is a group of individuals that supervise strategic planning and decision-making according to the company’s mission vision, mission, and values. The Board of Directors is responsible for balancing the interests of shareholders, keep integrity and plan for the future of their organization.

A subset of the board, the executive committee deals with urgent issues and acts as a steering mechanism for the board. It typically consists of a secretary, treasurer, vice-chairperson and a chairperson. The chairperson is the leader of the committee and usually the CEO and vice-chairperson assists the chairman, stands in for them when they’re absent and acts as an assistant-in-command. The secretary is responsible for the calendar of the committee and ensures that all members have access to important online board meeting documents.

By design the executive committee is a tiny group. They are more agile and can meet on short notice to make decisions in urgent situations. This lets the board focus their meetings on more pressing issues.

A executive committee could also be tasked with repetitive tasks and act as a representative of the company when the whole board isn’t present, such as in legal or financial procedures. It can also be used to evaluate controversial ideas and assess how the company handles them prior to making them available to the entire board. The committee shouldn’t be an additional power structure. It is important to have a clear delegation of authority as well as internal checks and balances.

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