The executive committee is a subcommittee of the board of directors, an the governing body of the company that oversees management and sets strategy. The members are elected by shareholders or shareholders and meet regularly to evaluate the financial performance of the company and set the policies and designate the senior management. It is also the governing body that ensures that good governance procedures are followed.

Executive committees, unlike the full board are smaller groups which have close ties with their leaders. They are able to meet quickly https://boardroomsupply.com/executive-committee-vs-board-of-directors/ and with short notice to discuss major issues, for example, urgent workplace issues, high-level strategic decisions, or even organisational supervision. Typically, they’re also accountable for ensuring that board members are aware of their responsibilities and roles. They also are in charge of delivering efficient training in governance practices. They may also be responsible for appointing a new CEO, conducting reviews of CEO performance and reporting to the board.

The executive committee is the steering wheel of the board. It decides the issues it will prioritize. It is vital, however, that the executive committee is fully open about its decisions with the rest of the board and follows the full board’s guidelines. It is recommended, to accomplish this the executive committee be a permanent committee of board with a fixed tenure and formal timeframes. This allows the board to easily see what issues have been dealt with by the executive committee, and which require the attention of the entire board.