Executive Committee Vs Board of Directors

The board of directors is a top governing body of a company. This body is responsible for the goals of the organization and the decision-making processes. The board of directors is made up of senior leaders who are elected or appointed by members. The corporate constitution, bylaws, and regulations of the government govern the director’s powers, duties and responsibilities.

An executive committee is an smaller, more focused group that is closely linked to the executive. They can meet on short notice to discuss urgent issues that affect the company and then bring the issues to the attention of the entire board. Depending on the company’s structure and bylaws the executive committee could have the same responsibilities as the board of directors, or it could be tasked with a specific set of duties.

Typically the executive committee is made up of the chairperson, vice-chairperson, and treasurer of the board. The chairperson is also the spokesperson for the organization and ensures that all committee and board activities are aligned with its mission. The executive committee can also be a good option when the company needs to swiftly take on recurring issues or controversial ideas, since the committee can be used to scrutinize and approve issues prior to presenting them to the full board.

It’s also important to ensure that the committee isn’t able to take on the power to make decisions that, according to bylaws belongs to the full board. A committee for executive management must have a clearly defined charter, a process to delegate power, and internal checks and balances.

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