What is an advisory committee?

Definition

An advisory committee is a group of individuals appointed to provide expert advice, recommendations, or feedback on specific areas of interest to the board or executive leadership. Like an advisory board, it does not have decision-making power or fiduciary duties, but it plays a valuable supporting role in shaping informed decisions.

What does an advisory committee do?

Advisory committees typically support the board by:

• Offering recommendations on strategy, risk, innovation, or compliance
• Gathering stakeholder input (e.g., customers, investors, community)
• Reviewing policies or proposals before full board discussion
• Acting as a sounding board for emerging initiatives

These committees often include subject matter experts or stakeholder representatives. Unlike standing committees (like audit or compensation), advisory committees are typically non-governing and topic-specific.

What is the purpose of an advisory committee?

The main purpose of an advisory committee is to enhance decision-making by bringing focused insight to complex issues. Boards may form an advisory committee when:

• They need technical or specialized expertise
• They want to explore a topic without overloading the full board
• External input is needed on sensitive or long-term projects

For example, a company may create an ESG Advisory Committee to recommend sustainability practices or a Digital Transformation Committee to review technology initiatives.

What is the role of an advisory committee?

Advisory committees serve as consultative bodies. Their role includes:

• Analyzing information and trends relevant to their focus area
• Preparing summaries or recommendations for the board
• Participating in discussions with board members or executives
• Providing insights without voting or governance authority

Their work informs (but does not dictate) board decisions.

In many cases, advisory committees are given access to relevant materials, updates, or summaries via digital tools like board portals. This allows them to stay informed and contribute meaningfully—without being involved in formal governance processes.

Quick summary

• An advisory committee provides insight and recommendations to the board
• It has no formal authority or voting rights
• These committees are often issue-specific and include external experts

Related terms

• Advisory board
• Board of directors
• Board governance