The Advisors' Blog

We’ve blogged a few times about the Great Resignation and the increasing focus given to human capital management – and this Skadden memo highlights that March 2022 set new records in the U.S. for both the number of employees quitting & the number of open positions.  One of the key differentiating factors in attracting and retaining employees is a good company culture (though it’s an amorphous concept). The Skadden memo sets out several ways that boards can help push the company’s culture in a positive direction, as excerpted below:

– Receive regular reports with employment data and monitor progress in addressing any negative trends. Good data is an important starting point. A board should receive regular reports from management with hiring and attrition data by office, department, job title, protected status and geographic location. This data can highlight what is working and areas that need attention.

– Clearly define the organization’s values and consistently communicate these principles to its employees. Boards should play an active role in defining the company’s values, communicating to employees the importance of its values and ensuring that the organization acts in accordance with them.

– Consider framing a policy with respect to commenting on political and social issues. A board should consider establishing a clear policy that defines the circumstances in which the corporation will take a position on political and social issues, the process for approving the substance of any statement made on behalf of the corporation and whether any such statement will be limited to internal communications or disseminated more broadly.

– Develop programs to engage with employees. If the organization does not already have focus groups and listening sessions with employees, the board may want to suggest those to elicit information about the employee experience.

We’ll be sharing critical guidance on this increasingly important topic at our “Proxy Disclosure & 19th Annual Executive Compensation Conference” this October, in these sessions:

– “The Evolving Compensation Committee” – with Davis Polk’s Kyoko Takahashi Lin, Semler Brossy’s Blair Jones, American Water’s Jeffrey Taylor and Pay Governance’s Tara Tays – will give you practical action items for your compensation committee to take to meet expanding stakeholder expectations.

– “Human Capital Disclosure: Mastering SEC & Investor Expectations” – with Aon’s Pam Greene, Gibson Dunn’s Ron Mueller, CalPERS’ Tamara Sells and Wilson Sonsini’s Amanda Urquiza – to get you ready for your upcoming human capital disclosures.

Here’s the full agenda for the Conferences – 18 sessions over 3 days. And some excellent news to kick off the week: our “Early Bird” rate has been extended to this Friday, June 17th – so make sure to register today for the best prices. Sign up online, email sales@ccrcorp.com, or call 1-800-737-1271.

– Emily Sacks-Wilner