Proposed SEC changes receive praise from legislator

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Sen. Mark R. Warner (D-VA) is lauding the Securities and Exchange Commission’s (SEC) recent proposal to modernize the reporting and disclosure of human capital management practices.

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Proponents of the action maintain human capital management disclosures lend insight into how companies compensate, train, retain and incentivize employees, adding several studies have determined human capital management disclosures are an important predictor of a company’s long-term success in a changing economy.

“I’m excited to see the SEC take this important step to recognize the significance of human capital management and the role it plays in the 21st-century economy,” Warner said. “Many of the ideas outlined in the proposed rule would go a long way in providing investors with the information they need to evaluate whether a company is making the appropriate investments in its workforce.”

Warner said he is looking forward to working with the SEC to develop a human capital disclosure regime for companies to help promote workforce training and investment, as well as long-term economic growth.

The SEC’s current human capital disclosure requirements are extremely limited, per proponents of the revisions adding the guidelines require disclosing only the number of employees, their median compensation, and CEO compensation. Last month Warner forwarded correspondence encouraging the SEC to heed the calls of investors and utilize its rulemaking authority to require companies across the board to provide further details relating to human capital management.

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