The board of directors is a corporate’s top governing body. The board is responsible for the decision-making process and guides the company towards its goals. The board of directors is comprised of senior leaders who are elected or appointed by members. The company’s constitution, bylaws and other regulations of the government govern the director’s powers as well as their duties and responsibilities.
An executive committee is a smaller committee with close ties through the leadership and who can meet on short notice to discuss urgent matters that affect the organization and then bring them to the board’s attention. The executive committee could have the same responsibilities as the board, depending on the organizational structure of the company as well as its bylaws.
The executive committee is typically made up of three executive committee vs board of directors members including the chairperson, vice-chairperson, and the treasurer. The chairperson is also the spokesperson and ensures that actions of the board and committees are aligned with the organisation’s mission. The executive committee can also be a good option if the company is seeking to address issues that are repetitive or controversial ideas. The executive committee can be used to review and approve these issues prior to them being discussed with the board.
It’s important, however, to ensure that the committee doesn’t assume decision-making responsibilities that are properly the responsibility of the entire board. A committee for executive management must have an explicit chart, a method to delegate power, and internal checks and balances.
