NACD Compensation Committee Chair and Risk Oversight Advisory Councils: Board Oversight of Human Capital Strategy and Risks

In brief: Designing an effective talent strategy in the face of workforce transformation has become a top priority for organizations of all sizes, as technology and the skills needed to use it are evolving faster than ever before. NACD, Farient Advisors, PwC, and Sidley Austin LLP convened the NACD Compensation Committee Chair and Risk Oversight Advisory Councils in October 2018 to discuss the board’s role in oversight of human capital strategy and associated risks. The discussion resulted in key takeaways for boards on how to clarify full-board and committee responsibilities, get the information needed for effective oversight, and setting expectations for management via the establishment of talent strategy metrics.

This brief can help your board consider:

• Major trends impacting the future of the workforce, and associated changes to employee recruitment and training strategies
• How to disclose the human capital strategy to investors
• Methods for collecting information from management about the talent strategy
• The role of committees in providing oversight of human capital
• How to work with management to set human capital objectives and measure success

Most relevant audiences: compensation committee members, audit committee members, risk committee members, and chief human resource officers