High Performing Boards and Human Capital ManagementDownload PDF
Boards started treating human capital management as a critical subject a few years ago, mostly in compensation committees. But Covid-19 and social justice concerns have now pushed the topic to the forefront of board discussions. Several organizations and institutional investors have pressed for stronger human capital management in light of pandemic-driven salary cuts, furloughs and layoffs. The SEC has responded with a statement of intention to focus disclosure on human capital as an essential driver of performance, requiring oversight at the board level. Boards and companies must now work together to build long-term reputational, cultural and operational value through human capital.