Executive Committee Vs Board of Directors

It can be challenging for an entire board of directors that has a variety of backgrounds and experiences to come to executive committee vs board of directors a consensus on the many issues that require attention. A minor, urgent issue can be addressed by an executive committee without waiting for the board to meet. However, an executive committee isn’t an alternative to the board of directors and is required to operate within the parameters of its authority from the board.

As the name implies an executive committee is a small group of senior-level executives and board officers who are given the authority to act on behalf of the entire board in certain emergency situations. The executive committee is usually made up of the chairperson and vice chairman of the board, as well as other board members. The board can also choose the chairs of the finance and governance committees and the program development committee, and the communications committee to the executive committee, if the bylaws permit it.

The executive committee’s role is to determine the priorities for resolution by the board in its entirety and provide feedback on regular basis to the CEO and other senior leaders, research emerging trends, technologies and markets as well as manage workplace culture and change management and assess the CEO’s performance. The executive committee is accountable in a greater way than the board and must be able quick decisions in an emergency.

If the executive committee is too dependent on its own decisions, or if a particular clique is given a higher priority than others and the other cliques, it’s time restructure the structure of the board. Shaylyn is a senior attorney at Caveat, with a specialization in commercial and corporate law. She has an LLB (cum-laude) from Wits University, and was admitted to the Bar in 2008.