The board of directors is a high-ranking governing body for a company. This body spearheads the decision-making process and guides the organization towards its objectives. The board of directors consists of senior leaders who are elected or appointed by members. The constitution of the corporation, its bylaws and other regulations of the government govern the board of directors’ authority and duties.
An executive committee is smaller, more focused group with close ties anonymous to the executive leadership. They may be able to meet at short notice to discuss urgent issues that affect the organization and then bring the issue to the attention of the board. The executive committee has the same responsibilities as the board, contingent on the organization’s structure and its bylaws.
Typically, the executive committee is made up of the chairperson, vice-chairperson and treasurer of the board. The chairperson also acts as the spokesperson of the organization and ensures that all board and committee activities are aligned with its mission. The executive committee could be a good option if an organization wants to address issues that are repetitive or ideas that are controversial. This group could be used to vet and approve the issues before they are brought to the full board.
It’s crucial, however to ensure that the committee does not assume decision-making power that is properly the responsibility of the board in general. Executive committees must have an explicit charter, a procedure for delegating power as well as internal checks and balances.
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