Executive Committee Vs Board of Directors

A board of directors is a set of people in an organization who oversees strategic planning and decision-making based on their goals, vision as well as their values and mission. The board is accountable for balancing the interests of shareholders, keep integrity, and plan for the future of an organization.

An executive committee is a subset of the board, which is responsible for urgent matters and acts as steering wheel for the board. It typically consists of a chairperson, vice-chairperson, secretary and treasurer. The chairperson is typically the CEO and leader of the committee, while the vice chairman assists the chairman and serves as their second in command when they are away. The secretary keeps minutes, keeps the calendar of committee members and ensures everyone has access to important documents.

A small group is the structure of an executive committee. They are more flexible and are able to meet on short notice to make decisions in emergencies. This lets the board focus their https://boardroomsupply.com/how-to-run-a-board-meeting/ meetings on more pressing issues.

A executive committee can also take on routine tasks and represent the organization when the full board isn’t required to be there, as in normal legal or financial procedures. It can also be used to vet controversial ideas and see how the company handles them prior to taking them to the full board. The committee should not be a secondary power structure. It is essential to have a clear delegation of authority as well as internal checks and checks and balances.