A board of directors is an organization’s group of people who oversee strategic planning and decisions in accordance with the company’s goals vision, mission, and values. Boards are responsible for balancing the interests of shareholders, maintaining integrity, and making plans for the future of the organization.
A subset of a board, the executive committee deals with urgent issues and serves as a steering committee for the board. It is usually composed of the secretary, treasurer, vice-chairperson and chairperson. The chairperson is often the CEO and the leader of the committee. the vice chairman assists the chairman and acts as their second in command when they are absent. The secretary keeps track of the committee’s calendar and ensures that all members have access important documents.
A small group is the design of an executive committee. They are more flexible and meet on short notice to take decisions in a crisis. This allows the entire board to focus on larger issues during their regular meetings.
A committee of the executive can also be tasked with routine tasks and represent the organization even when the entire board isn’t required to be there, as in normal legal or financial procedures. It can also be used to vet controversial ideas and observe how the organization handles them before making them available to the entire board. The committee should not be a second-tier power structure, and it’s recommended to have a clear delegation of authority, as well as an internal set of checks and balances.
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