Executive Committee Vs Board of Directors

The board of directors is the most powerful authority in a company’s. This body is the primary decision-making process and steers the organization toward its goals. The board of directors is composed of top leaders who are usually appointed or elected by data breaches the members. The corporate constitution, bylaws and regulations from the government regulate the board of directors’ authority, duties and responsibilities.

An executive committee is a smaller committee with close ties with the leadership and who can meet at short notice to discuss urgent issues that affect the organization and then bring them to the board’s attention. The executive committee could have the same duties and responsibilities as the board, based on the organizational structure of the company as well as its bylaws.

The executive committee is usually comprised of three members: the chairperson, the vice-chairperson, and the treasurer. The chairperson also acts as the spokesperson for the business and ensures that all committee and board activities are in line with the mission. The executive committee is also an excellent option when the company needs to swiftly resolve issues that are repetitive or have controversial ideas, since the committee can be used to vet and approve these matters before bringing them to the full board.

It is important, however, to ensure that the committee does not take on decision-making authority that is properly the responsibility of the board in general. An executive committee should have an explicit charter, a procedure for delegating power and internal checks and balances.