An executive committee is an association comprised of board members that have close relationships with the leadership team and meet to discuss urgent issues that affect the business. They make decisions for the entire board and provide strategic direction. They also serve as a link between the board of directors and the CEO. An executive committee is the ideal solution for businesses that have a number of repetitive issues, require immediate action on critical how to run a board meeting issues or don’t want to wait until the entire board can meet.
An effective executive committee should include top executives as well as the heads of other committees. Typically, the chairperson of the board serves on the executive committee too. They should be in charge of the agenda for the committee and ensure that all board and committee activities are in line with the goals of the business. The person in charge will also serve as the spokesperson for the board and also choose chairpersons of the committee. The number of members in the executive committee can vary from one organization to the next. The bylaws of the board must clearly specify who will sit on the committee. Research suggests that a seven-member committee is the most effective size for making the best decisions.
The executive committee is responsible of establishing governance practices and taking strategic decisions at a high level and providing oversight to management. They are also accountable for the education and development of board members. Based on the size of the group the committee could meet on a monthly, quarterly, or as needed basis.
While an executive committee is an excellent tool for many nonprofits, it’s not a universal approach to board governance. There may not be a need for an executive committee in the case of a small board or if you’ve got a board of directors that do well without one.