The executive committee is a subcommittee that sits under the board of directors. It is the organ that governs the company, oversees the management, decides on strategy and supervises its members. The members are elected by shareholders or members, and regularly meet to review financial performance, make decisions about policies, and choose senior managers. It is also the governing body that makes sure there is that good governance procedures are followed.

Unlike the full board of directors Executive committees are typically smaller groups with close ties through the leadership. They are able to meet quickly and on short notice to address important issues, such as urgent workplace matters and high-level strategic decision-making, or organisational oversight. They are typically responsible for ensuring that board members are aware of their roles and responsibilities and are in charge of delivering effective training in governance. They could also be accountable for appointing new CEOs as well as conducting evaluations of CEO performance and reporting them to the board.

Ultimately, the executive committee is the board’s steering wheel, giving priority to https://boardroomsupply.com/ issues the board must address. It is crucial that the executive committee be fully transparent with the rest of the board on its decisions and respects the full board’s guidelines. It is recommended, to achieve this the executive committee be a permanent committee of the board with a fixed time and formal timeframes. This will allow the entire board to discern what issues have been dealt with by the executive committee, or if it requires the attention of the entire board.