Board members have a fiduciary obligation to act in the organization’s best interests. They shouldn’t divulge private information, act in conflict of interest, or use their position for personal gain or advantage. A board member’s major responsibility is to supervise and advise the executive team, therefore they should refrain from micromanaging the organization’s activities.
A portion of the board called the executive committee is in charge of making decisions between meetings on behalf of the entire board. The vice-chair, secretary, treasurer, and chair of the board make up the executive committee in most cases. The executive committee is tasked with reviewing and approving significant choices, including hiring key employees, passing budgets, and making urgently needed strategic decisions.
A top executive in charge of an organization’s overall management is known as the executive director. The executive director is in charge of carrying out the board’s decisions and strategic direction and directly reports to the board of directors. The executive director typically holds the position of highest rank within the company and is empowered to act on its behalf.
Although it is feasible, it is uncommon to have two executive directors. Being given two people with equal responsibility while the executive director is the highest-ranking official in the organization can be confusing and impair decision-making. It is more typical to create a second post, such as a chief operational officer, to serve alongside the executive director if a business needs extra leadership.
In conclusion, the Executive Board is crucial to an organization’s success. To make sure they act in the organization’s best interest, board members must behave ethically and prevent conflicts of interest. A portion of the board has the ability to make significant decisions in between sessions thanks to the executive committee. It is unusual to have two executive directors because they are senior-level executives who are in charge of the organization’s overall management. To ensure the success of the organization, the Executive Board must have distinct roles, duties, and boundaries.
The executive director typically receives direct reports from the organization’s staff members and department heads. The precise reporting structure, however, may change based on the organization’s size and structure.
The organization and its structure will determine this. The Executive Director may be in charge in some businesses while the Chief Operating Officer (COO) may be in charge in others. Each position’s duties and responsibilities can change based on the organization’s demands. Which position is higher will ultimately be determined by an organization’s hierarchy and reporting structure.