Human capital management: Tips for boards and human resource & compensation committees
Companies need to attract, engage, and develop different kinds of talent to support their business strategy and plan for future growth. Human capital management (HCM) can play a significant role in enhancing a company’s success and increasing shareholder value.
Recognizing the importance of this critical asset, investors expect boards to establish a positive “tone at the top” and oversee how companies support and develop their workforce.
This article provides tips to help boards and human resource & compensation committees (HRCCs) navigate their evolving HCM responsibilities, including working with management to: select HCM metrics that support the company’s strategy and decide whether to use them in incentive plans; ensure disclosures comply with SEC rules and tell the company’s story; understand shareholder and proxy advisor policies on HCM; work toward board and management diversity; and update governance documents.
is a Senior Legal Consultant in Mercer's Law & Regulatory Group (L&R) based in Washington DC. She provides expert analyses on a variety of US and Canadian compliance and policy matters, and advises clients on securities and corporate governance issues affecting executive pay in North America.
is a Partner and Senior Legal Consultant in Mercer's Law & Regulatory Group (L&R) based in New York. She specializes in technical legal and regulatory issues affecting executive compensation and corporate governance. She focuses on SEC disclosure, tax, employment and change in control agreements, equity programs, and employee benefit issues that arise in the context of corporate transactions and initial public offerings.