An executive committee is a group comprised of board members that have close leadership ties and convene to discuss urgent issues that affect the business. They make decisions for the full board and establish the strategic direction. They also serve as a liaison between the board of directors and the CEO. An executive committee is an ideal solution for companies with a lot of repetitive issues, require immediate decisions on critical issues or don’t wish to wait until their entire board is seated.
A well-functioning executive committee will comprise high-level executives as well as leaders of other committees. The chairperson of the Board is typically also a member of the executive committee. They are the ones responsible for the agenda for the committee and ensure that all committee and board activities are in line with the business’s objectives. The person who is appointed will also select committee chairs and act as the board spokesperson. The number of members of the executive committee can vary between organizations. However, the board’s bylaws should clearly state the members of this committee. Research shows that a seven-member committee is the most effective size for optimal decision making.
The executive committee is responsible for establishing governance standards and taking strategic high-level decisions and giving oversight to management. They are also responsible for the training and development of board members. Depending on the size the committee could meet monthly or quarterly, or on a necessary.
While an executive board is an effective tool for many non-profits, it’s not an all-inclusive approach to governance of boards. It’s possible that you don’t need an executive committee in the case of a small board or you have an existing board of directors that do well without one.