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.

About the author(s)
Carol Silverman

is a partner in Mercer’s New York office, specializing in executive compensation and corporate governance. She is a member of Mercer’s Executive Law & Regulatory Group, which assists Mercer clients and consultants in addressing technical legal and regulatory issues affecting executive compensation. Carol tracks and interprets significant executive compensation developments, with an emphasis on tax and disclosure. She specializes in employment and change in control agreements, equity programs, and employee benefit issues that arise in the context of corporate transactions and initial public offerings.