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 duties, 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 are compliant with SEC rules and tell the company’s story; engage with shareholders and proxy advisors; achieve board diversity; and update governance documents.

 

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Amy Knieriem
by Amy Knieriem

Senior Principal, Senior Legal Consultant

Carol Silverman
by Carol Silverman

Partner, Senior Legal Consultant

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