Executive Committee Vs Board of Directors

If a company has a board that is large and with a diverse mix of experience and backgrounds it may be difficult for the full board to make decisions on all issues that require attention. Executive committees allow members to address some of the smaller, urgent issues without waiting for an all-board meeting. Executive committees www.boardroomsupply.com/executive-committee-vs-board-of-directors/ are not a substitute for the board and must work within the boundaries of the delegated powers granted by the board.

The name implies the executive committee is an elite group of senior-level executives and board officers, who are given powers to act on behalf of the entire board in certain, urgent circumstances. Typically the executive committee comprises the chairperson and vice-chairpersons of the board, along with other members of the board. It is possible for the board to appoint chairs of the finance, governance, program development and communications committees to the executive committee in the event that the bylaws allow it.

The executive committee is accountable for setting priorities that will be decided by the board. It also provides feedback to the CEO on a regular schedule, conducts research into emerging trends market, technologies, and trends, manages workplace culture, implements change management, and evaluates the CEO’s performance. The executive committee is accountable to a greater degree than the board, and must be able to take quick decisions in an event of need.

If the executive committee is becoming too dependent on its own decisions or if one particular group of people consistently has a higher priority than others, it’s time to discuss ways to restructure the structure of the board. Shaylyn King is a senior associate at Caveat which specializes in corporate and commercial law. She has an LLB (cum laude) from Wits University and was admitted to the Bar in 2008.