CFO Corner: Human Capital Disclosure

Investors, as well as the U.S. Securities and Exchange Commission (SEC), are calling for the disclosure of publicly-traded companies’ data on the more qualitative aspects of business. This data includes workforce costs, workforce diversity, recruitment, turnover, and much more. When invited, by, to share TDS’ perspective, Vicki Villacrez, SVP of Finance and CFO, offered many insights.

When it comes to opinion on the value of human capital metrics to investors and analysts, Vicki stated,

“In my opinion investors and analysts view human capital metrics through two lenses: material risk and corporate values. Investors want to invest in companies with a moral compass. Disclosure on issues, like human capital, are one way to measure and give investors greater context.

“Topics such as diversity, human rights, labor, safety, employee volunteering, and charitable giving are increasingly important context to highlight material risks that may impact the business; they also illustrate company values and show how a business generates results.”

As the SEC looks to mandate disclosure, Vicki said,

“TDS has a great story to tell and we are working to gather metrics and build disclosures to help us tell it.

“Our current investors understand we operate with the highest level of ethics and dedication when serving our customers and communities. Many of our employees live within the rural and suburban communities we serve, making it even more important to live by our corporate values day in and day out, as we have done for the past fifty years.”

In thinking about whether disclosing human capital metrics could have a positive effect on the company, Vicki declared,

“Absolutely–we understand the need to provide greater transparency in this area to aid in both retention and recruitment of high-quality employees.

“Investors are beginning to focus more on the ways in which human capital metrics drive business results and therefore metrics to illustrate this connection will be increasingly important to disclose.”

For a deeper dive on what’s coming with Human Capital disclosure, including Vicki’s quotes in CFO online, click here.

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