Executive Committee Vs Board of Directors
A board of directors is a group of people who oversee strategic planning and make decisions in accordance with the company’s goals as well as its vision, mission and values. Boards are accountable for balancing the interests of shareholders as well as maintaining integrity and planning for the future of the organization.
A subset of the board, the executive committee is responsible for urgent matters and serves as a steering committee for the board. It typically consists of the secretary, treasurer, vice-chairperson and chairperson. The chairperson is typically the CEO and the leader of the committee, while the vice chairman assists the chairman and acts as their second in command when they are away. The secretary maintains the calendar of the committee and ensures that all members have access important documents.
By design, an executive committee is a small group. They are more flexible and meet at short notice to take decision in an emergency. This lets the board focus their meetings on more important issues.
A executive committee could also be tasked with routine tasks and represent the organization when the full board isn’t present, such as in financial or legal procedures. It is a great way to test controversial ideas and to observe how the organization reacts to them prior to presenting it to the board. The committee should not serve as a secondary power structure. It is crucial to have a clear and precise delegate of responsibility as well as internal checks and balances.
