CFO Magazine: Show Us the Talent

Currently, most public companies do not have a consistent, standardized, method to communicate with shareholders and other stakeholders about the financial value of their human capital assets.

The Society for Human Resource Management has recently proposed a Standard for corporate disclosure of human-capital that includes the reporting of employee salaries, benefits and taxes; number of full-time equivalents and total headcount; spending on employee support; spending in lieu of employees; and training and development as well as employee retention and leadership pipeline.

CFO Magazine published an article about the proposed Standards.

David McCann writes, “Keith Mills, an equity analyst at Trillium Asset Management, says that human-capital analysis ‘is critical input in analyzing the probability of a company generating its return on invested capital that’s above its weighted average cost of capital.’ Investors want companies to ‘build productive, ethical, and sustainable organizations over the long term,’ he says, and ‘analysts should be aware of all inputs that will contribute to this outcome.’”

You can read the entire article here.