The executive committee is a subcommittee within 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 members, and meet regularly to evaluate the company’s financial performance, formulate policies, and appoint senior managers. It is also the governing body which ensures the compliance of good governance policies.
Unlike the full board of directors executive committees are generally smaller groups with close connections with leadership. They can be gathered in a short time and with a short notice to tackle major issues such as urgent workplace issues, high-level strategic decision making or oversight of the organisation. They’re usually accountable for ensuring that board members are aware of their responsibilities and roles, and they are the ones who lead in providing effective governance training. They are also accountable to appoint new CEOs and conducting evaluations of the performance of CEOs and reporting them to the board.
Ultimately, the executive committee functions as the steering wheel for the board focusing on issues the board should consider. However, it is important that the executive committee be fully transparent with the rest of board on its decisions, and abides by the full board’s guidelines. It is suggested that to achieve this, the executive committee should be a permanent member of the board with a fixed time and formal terms. This will allow the board to quickly see the issues that have been addressed by the executive committee and that require More hints the attention of the entire board.
