Not much more than seven months ago, the Securities and Exchange Commission (SEC) announced an important new 10-K disclosure requirement: to describe human capital resources and objectives or measures used in the management of the business that are material to the understanding of a company’s business.
Faced with a blank canvas last August when the rule was announced, many companies formed cross-functional teams to consider, among other things, what information to disclose, the length of the disclosures and whether (and how) to include quantitative metrics. Some included a breakout of employees by geography, the number of part- and full-time employees, the number or percentage of employees covered by collective bargaining agreements, or a breakdown by gender.
The first wave of 10-K filings with human capital disclosures is in, offering benchmarking for peers. Here are key takeaways about industry-specific themes and broad differences among individual companies.