Executive Committee Vs Board of Directors

The executive committee is a subcommittee to the board of directors, an organisation’s governing body that supervises management and sets the company’s strategy. The members are elected by shareholders or shareholders and meet regularly to evaluate the financial performance of the business, set policies and designate the senior management. It is the governing body that ensures that good governance procedures are followed.

As opposed to the board of directors executive committees are typically smaller groups with close ties through the leadership. They are able to meet in a short time and with a short notice to address important issues such as urgent workplace matters as well as high-level strategic decision making or organisational oversight. Typically, they’re responsible to ensure that board members know their roles and responsibilities. They also are in charge of delivering efficient training in governance practices. They could also be responsible for https://boardroomsupply.com/ appointing a new CEO, conducting reviews of CEO performance and reporting to the board.

The executive committee is the steering wheel for the board giving priority to issues that the board must address. It is important, however, that the executive committee is transparent about its decisions with the rest of the board and abides by the board’s guidelines. To achieve this, it is suggested that the executive committee is a standing committee of board with a set term of office and formal terms of reference. This will allow the board to see the issues that have been addressed by the executive committee, and which require the attention of the board in general.