The executive committee is a subcommittee of the board of directors, an organization’s governing body that oversees management and formulates the strategy. The members are elected by shareholders or shareholders and meet regularly to examine the financial performance of the business and set the policies and designate the senior management. It is the governing body which ensures that proper governance procedures are adhered to.
Executive committees, unlike the full board are smaller groups that have close ties to their leadership. They can meet swiftly and at short notice in order to address major issues, like urgent workplace issues, strategic decisions, or even organisational supervision. Typically, they’re also responsible for ensuring that board members are aware of their responsibilities and roles. They also provide effective training in governance practices. They could 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, determining the issues it will prioritize. It is crucial that the executive committee be completely transparent with the rest of the board on its decisions and respects the full board’s guidelines. It is suggested that, to achieve this the executive committee be a permanent committee of https://boardroomsupply.com/tips-to-organize-an-efficient-online-board-meeting/ the board with a fixed term and formal timeframes. This will allow the entire board to know whether an issue was taken care of by the executive committee as opposed to when it still requires the attention of the entire board.