A board of directors is an organization’s group of directors who supervise strategic planning and decision-making in line with the company’s objectives as well as its vision, mission and values. They are accountable for balancing the interests of shareholders as well as maintaining integrity and making plans for the future of the organization.
An executive committee is a section of the board which handles urgent issues and acts as a steering wheel for the board. It is typically comprised of three members: a vice-chairperson, a chairperson secretary and treasurer. The chairperson is the leader of the committee and often the CEO the vice-chairperson supports the chairman, acts as a substitute for them when they’re absent and acts as an assistant-in-command. The secretary records minutes, maintains the committee’s calendar and makes sure that all members have access to important documents.
A small group is the structure of an executive committee. They are more flexible and are able to meet on short notice to make decisions in emergency situations. This allows the whole board to concentrate on more significant issues during their regular meetings.
A executive committee could also handle routine tasks and represent the organization when the full board isn’t there, as in standard legal or financial procedures. It can be used to test controversial ideas and to see how the organization responds to them before bringing it before the board. The committee should not be an additional power structure. It is important to have a clear and precise delegate of authority as well as internal checks and checks and balances.