The executive committee is a subcommittee within the board of directors, an organisation’s governing body that supervises management and establishes the strategy. Members are elected by members or shareholders. They meet regularly to evaluate the financial performance of the company and set the policies and select the click for more top management. It is also the governing body that makes sure there is the compliance of good governance policies.

Executive committees, unlike the full board, are smaller groups which have close ties with their leadership. They are able to meet quickly and at short notice in order to address important issues for example, urgent workplace issues, strategic decisions, as well as organisational supervision. Typically, they’re also accountable for ensuring that board members are aware of their roles and responsibilities, and provide efficient training in governance practices. They may also be responsible for selecting a new CEO, conducting CEO performance reviews, and reporting to the board.

The executive committee is the steering wheel of the board, determining what matters it should put first. However, it is important that the executive committee is fully transparent with the rest of board on its decisions and adheres to the board’s guidelines. It is suggested that, to achieve this the executive committee be a permanent committee of board, with a fixed duration and formal terms. This makes it easier for the entire board to discern what issues have been taken care of by the executive committee, or if it requires the attention of the entire board.