A board of directors is a group of individuals within an organization that manages strategic planning and decision-making based on their vision, goals values, mission, and values. The board is responsible for balancing the interests of shareholders as well as maintaining integrity and making plans for the future of the business.
An executive committee is a section of the board that is responsible for urgent issues and serves as a steering wheel for the board. It typically consists of three members: a vice-chairperson, a chairperson secretary and treasurer. The chairperson is the chief of the committee, and is often the CEO, while the vice-chairperson helps the chairman, serves as a replacement for them when they’re not present and acts as an assistant-in-command. The secretary is responsible for keeping minutes, manages the calendar of the committee and ensures everyone has access to important documents.
By design an executive committee is usually a small group. They are more flexible and able to meet at short notice to take decisions in an emergency. This allows the board to focus their meetings on more important issues.
A executive committee could also handle repetitive tasks and act as a representative of the organization even when the entire board isn’t required to be there, as in standard legal or financial procedures. It is also a way to vet controversial ideas and assess how the organization handles them prior to taking them to the full board. The committee should not serve as an additional power structure. It is important to have a clear delegate of authority and internal checks and balances.