Resource Library ESG & Human Capital Management

Following an extensive internal diagnostic, companies can focus on key HCM areas including, but not limited to, performance management; succession planning; diversity, equity, and inclusion (DE&I); and culture.

Organizations that lead in DE&I devote meaningful energy from a strategic perspective by aligning DE&I with business strategy, dedicating sufficient resources, and emphasizing accountability.

While we don't anticipate immediate clarity on these questions, we see this as an opportunity for companies to reflect on their DE&I policies, practices, and metrics to ensure they align with business and communication strategies.

Directors with human capital expertise can be invaluable at a time when the “war for talent” is raging.

The absence or misalignment of well-executed DE&I initiatives can introduce unintended challenges, potentially derailing the achievement of objectives.

In certain cases, many enduring principles of executive compensation should be applied to ESG metrics, including considering the alignment to company strategy and values and the incentive value that a broader view of performance can provide.

It’s only natural for boards to worry about retention in CEO transitions, whether hiring from inside or outside. When making retention award decisions, boards should consider the following.

Non-tech companies often need help when hiring and keeping tech-savvy talent. Semler Brossy’s leadership group recently discussed what strategies non-tech companies could use to build their tech organization.

Boards have a growing interest in special equity awards to fend off recruiters and partially compensate executives for target pay that was not fully realized. Are special awards a good solution?

As with other operational or strategic metrics, adding ESG metrics to incentive plans can be a signal of importance and a sign of commitment.

For companies that are early in their ESG and HCM journey and considering a link to incentives, a scorecard may be a good starting point to help address some of the issues that come along with setting ESG and HCM goals.

The most critical choice the board makes is selecting the CEO. All boards have strategies that the current management team has developed. A different standpoint on strategy, in turn, may require a different kind of leader. 

We recommend boards and directors ask these questions to help understand their role in process oversight, emergency planning, transition dynamics, and more.