The executive committee is the subcommittee of the board of directors. It is the organization’s governing organ that oversees the management, establishes strategy and oversees its members. The members are elected by shareholders or members, and meet regularly to discuss financial performance, set company policies, and elect the top managers. It is also the governing body that makes sure there is that good governance procedures are followed.

As opposed to the board of directors, executive committees are usually smaller groups with close ties through the leadership. They are able to meet quickly and with short notice to address major issues such as urgent workplace matters and high-level strategic decision-making or organisational oversight. They’re usually accountable for making sure that board members are aware of their responsibilities and roles, and they are the ones who lead in providing effective governance-related training. They could also be responsible for appointing a new CEO, conducting CEO performance reviews, and reporting to the board.

Ultimately, the executive committee functions as the steering wheel of the board, making decisions about the issues the board must click for more address. However, it is essential that the executive committee is completely transparent with the rest board on its decisions, and respects the full board’s guidelines. To accomplish this, it is recommended that the executive committee is an ongoing committee of the board, with a fixed term of office and formal terms of reference. This will allow the board to easily see what issues have been dealt with by the executive committee, and which require the attention of the entire board.