Executive Committee Vs Board of Directors

https://boardroomsupply.com/executive-committee-vs-board-of-directors/

The board of directors is the company’s highest governing body. The board is accountable for the goals of the organization and the decision-making process. The board of directors is comprised of senior leaders who are appointed or elected by members. The corporate constitution, bylaws and other regulations of the government govern the board of directors’ powers and duties.

An executive committee is a smaller committee with close ties to the management who can be gathered on short notice and discuss urgent issues that affect the company and then bring them to the full board’s attention. The executive committee can have the same responsibilities as the board on the organizational structure of the company as well as its bylaws.

The executive committee is typically made up of three members comprising the chairperson, the vice-chairperson, and the treasurer. The chairperson also serves as the spokesperson and ensures that all activities of the board and committee are in line with the mission of the organization. The executive committee could be a good choice when an organization wants to swiftly address repetitive issues or ideas that are controversial. This group can be used to review and approve these matters before they are discussed with the board.

It is important, however, to ensure that the committee doesn’t assume decision-making responsibilities that are properly the responsibility of the entire board. Executive committees must have a clearly defined charter, a process for delegating power and internal checks and balances.