Joining a Board committee, a strategic decision and an opportunity for newly appointed non-executive directors starting out a board career
When we think about governance, the image that often comes to mind is a board of directors gathered around a table. However, some essential work takes place within the structure of board committees. For non-executive directors, particularly those beginning their journey, joining a committee offers a powerful way to become actively involved, contribute meaningfully to the organisation and build a solid foundation for non-executive career.
The importance of Board Committees
Committees are smaller working groups within a board, each tasked with a specific focus. Most common committees are audit, risk, remuneration, or nomination. In recent years, organisations have established new board committees. For example, our jobs board indicate that organisations establish board committees to address specific requirements, such as:
- consumer and customer
- sustainability or ESG
- technology
- equality, diversity and inclusion
While full board meetings are essential for final approvals, committees are typically where detailed analysis, debate, and problem-solving happen. They provide a platform where directors can explore issues in depth, seek clarification, weigh options, and make recommendations to the full board.
Conversation with our members indicate that NEDs often spend more time in committee meetings than in full board meetings.
Why committees matter to newly appointed NEDs
For NEDs transitioning into their first non-executive roles and building their portfolio, serving on a board committee is an excellent opportunity to both learn and lead. Here are 3 reasons to position yourself for joining a board committee:
✅ Gaining insights into a specific area of governance
Committee roles allow NEDs to dive deep into specific aspects of governance, like financial oversight and internal controls through the audit committee or talent management via the nomination committee. This exposure enables new NEDs to develop their expertise, as well as become familiar with the organisation’s operations.
✅ Building relationships
Committees have more intimate settings than full board meetings. They provide a platform where NEDs can build strong working relationships with fellow directors, executive teams, and key stakeholders. The discussions taking place within committees typically allow new NEDs to contribute more meaningfully and have greater influence over the recommendations put forward to the full board.
✅ Demonstrating accountability
For NEDs aspiring to move into senior non-executive roles, including chairing committees or even the board itself, participating in committee work is a crucial step. It is an opportunity to demonstrate leadership skills, manage the complexities of decision-making and build a constructive and inclusive environment. Committees are also a proving ground where NEDs can show their ability to ask the right questions, and make informed recommendations.
Committees you may want to join
👉 Audit Committee or Audit & Risk Committee
Typically responsible for overseeing financial reporting and risk management, the audit committee ensures the organisation’s financial integrity. For NEDs with a background in finance, audit or risk management, this is an ideal committee to join, offering the chance to scrutinise financial statements, liaise with external and internal auditors, and oversee internal control mechanisms.
👉 Remuneration Committee
The remuneration committee plays a vital role in setting the compensation framework for senior executives and ensuring that pay structures align with the long-term interests of the company and its stakeholders. For new NEDs with experience in human resources, or executive compensation, this committee is a good entry point. The remuneration committee is often more technical than a non-reward professional might initially expect. Beyond simply determining executive pay, this committee must navigate complex regulations, incentive structures, and performance metrics that align with long-term business objectives.
👉 Nomination Committee
The nomination committee is responsible for board composition and succession planning. It identifies, assesses, and recommends individuals for board positions, ensuring that the board has the necessary diversity, skills, and experience to govern effectively. NEDs who join this committee gain insight into how leadership succession is managed, how diversity and inclusion initiatives are embedded in board selection, and how future leaders are developed.
👉 ESG or Sustainability Committee
Some organisations are establishing dedicated ESG or sustainability committees. These committees oversee the company’s sustainability strategy, ensuring it addresses critical concerns such as environmental impact and social responsibility. For NEDs, particularly those with a background in sustainability, strategy, risk management, or regulatory compliance, joining this committee provides an opportunity to help the company navigate evolving expectations from investors, regulators, and society at large.
For non-executive directors in the early stages of their non-executive careers, joining a committee is a strategic move that can help them gain practical experience, build relationships, and demonstrate their leadership capabilities. Committees offer a platform for in-depth analysis, active engagement, and meaningful contribution. So, if you are newly appointed or new to the non-executive role, seize the opportunity to join a board committee!
Ready to take your board career to the next level? Explore our NED Diploma and discover how to make an impact on your first board committee. Learn more and start shaping your future today!
