SEC Wants More Human Capital Disclosures But Won’t Say How Much (1)

Companies will have to report details about the management of their workforces under new SEC rules, though what they reveal could be anyone’s guess.

The Securities and Exchange Commission made changes Aug. 26 to Regulation S-K, which focuses on companies’ non-financial reporting requirements. But the agency’s 131-page document explaining the changes didn’t define human capital or tell companies exactly what new disclosures it wants from them.

Companies have to describe material “human capital measures or objectives that the registrant focuses on in managing the business,” which could include information on developing, recruiting, and retaining employees, according to the final rule ...