The executive committee is the subcommittee of the board of directors. It is the organisation's governing body, which oversees management, sets strategy and supervises its members. Members are elected by members or shareholders, and regularly meet to review financial performance, make decisions about policies, and select senior managers. It is also the governing body which ensures adherence to good governance procedures.
Unlike the full board of directors, executive committees are usually smaller groups with close ties with leadership. They can be gathered quickly and with short notice to address major issues, such as urgent workplace issues as well as high-level strategic decision making or oversight of an organisation. They're usually responsible for ensuring that board members are aware of their roles and responsibilities, and why not try here they take the lead in delivering effective governance practices training. They could be accountable for selecting a new CEO, conducting CEO performance reviews and reporting to the board.
In the end, the executive committee serves as the board's steering wheel, focusing on issues the board should be addressing. It is essential, however, that the executive committee is fully transparent in its decisions to the rest of board and adheres to the board's policies. It is recommended, to achieve this the executive committee be a permanent committee of board with a fixed term and formal timeframes. This allows the board to easily determine the issues that have been addressed by the executive committee and which require the attention of the board in general.