"How boards can approach human capital management" from Sullivan & Cromwell is a great resource for those companies that are evaluating their approach to human capital management (HCM) - whether as a result of increasing investor, employee, consumer or other stakeholder expectations, a recent incident, or otherwise.
In addition to providing an overview of recent developments that have coalesced to raise this topic's profile, the article:
- Outlines relevant HCM-related policy, procedural, and other areas for the board's and management's consideration
- Identifies - for board consideration - oversight practices that some companies have adopted
- Suggests talent development & succession planning practices for boards and management to consider in conjunction with the company's overall HCM approach
- Lists a series of key factors boards and management should consider in determining the company's disclosure approach and strategy
Notably, reportedly one-third of the 30 Dow Jones Industrial Average companies have broadened the responsibilities of their Compensation Committees to include HCM functions.
See also these recent reports: "Compensation Committee Becoming Human Capital Committee & "Corporate Culture Oversight: Here's How!", "SEC Chair Clayton Speaks on Human Capital Disclosure & Proxy Plumbing," "Public Pension Trustees Launch Human Capital Management Principles," and "Human Capital Management," and additional information & resources on our ESG, Compensation Committees and Corporate Culture pages. This post first appeared in the weekly Society Alert!