The Board’s Mandate in Human Capital Management
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The Board’s Mandate in Human Capital Management
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In this episode, we discuss the expanded role of Boards of Directors in human capital management. Boards must balance their involvement in operational management, especially when selecting a CEO. The CEO’s skills should align with the company’s needs—whether for internal transformation or growth. Boards should also avoid allowing new CEOs to bring their “mafia,” which can disrupt company culture. Compensation is another critical factor, where variable pay and ESOPs are used to drive performance. Building a customer-oriented culture starts with the board, influencing the entire organization. In the future, boards in Asia and the Middle East will continue to play a vital role in operational and strategic management, especially in HR governance.
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