If an organization has a large board that includes a variety of backgrounds and experience it can be difficult for the board to make a decision regarding all issues that require attention. A minor, urgent issue can be addressed by an executive committee without waiting for the board to meet. Executive committees are not a substitute for the board and must operate within the boundaries of the delegated powers granted by the board.
An executive committee, as the name implies, is a small group made up of board members and senior executives. officers who have the authority to act in urgent situations on behalf of the full board. The executive committee is typically comprised of the chairman and vice chairman of the board as well as other board members. The board can also nominate the chairs of the finance and governance committees, the program development committee, and the communications committee to the executive committee if the bylaws permit it.
The duties of an executive committee are to establish priorities for resolution by the board as a whole and provide feedback on regular basis to the CEO and other senior leaders, research emerging trends, technologies and markets to manage workplace culture and change management and evaluate the CEO’s performance. The executive committee is responsible boardroomsupply.com in a greater way than the board, and must be able make quick decisions in an event of need.
If the executive committee is becoming too reliant on its own decisions or if a specific group of people is regularly favored over others, it is time to think about how to restructure the board structure. Shaylyn King is a senior associate at Caveat with a specialization in commercial and corporate law. She holds an LLB (cum-laude) from Wits University, and was admitted to the Bar in 2008.