If an organization has a large board that includes a variety of backgrounds and experience it can be challenging for the entire board to take decisions on all issues that need attention. An executive committee lets members to take on the more urgent, smaller issues without having to wait for an all-board meeting. However an executive committee isn’t a replacement for the board of directors and must function within the boundaries of its delegation from the board.
The name implies an executive committee a small group of senior-level executives and board officers who are granted the authority to serve on behalf of the entire board in certain urgent circumstances. Typically the executive committee comprises the chairperson and vice-chairperson of board, along with other members of the board. The board may designate the chairs of the governance and finance committees as well as the program development committee, and the communications committee to the executive committee, if the bylaws allow it.
The executive committee is accountable for setting priorities to be decided by the board. It also see page https://boardroomsupply.com/the-best-virtual-data-room/ provides feedback to the CEO on a regular schedule and conducts research on emerging trends technology, markets, and technologies and manages the culture of the workplace, implements change management and assesses the CEO’s performance. The executive committee is accountable for a broader range of issues than the board and must be able to quickly make decisions in the situation of an emergency.
If the executive committee is becoming dependent on its own decision-making, or if a certain group of people is regularly favored over others, it is time to think about ways to restructure the board structure. Shaylyn is a senior attorney at Caveat, specializing in commercial and corporate law. She holds an LLB (cum-laude) from Wits University, and was admitted to Bar in 2008.
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