September 9, 2022

Upcoming Investor Advisory Committee Meeting: HCM Valuations & More

Several hot topics and potential rulemaking items are getting air time with the SEC at an upcoming public meeting of the Investor Advisory Committee – scheduled for Wednesday, September 21st at 10am Eastern. The agenda includes:

1. Human Capital Management and Labor Valuation and Performance – This plenary session will consider the demand for labor-related performance data from the investor perspective, including investors’ views on the quality and decision-usefulness of currently-available data, and which information – if any – investors would use should it become available, and why.

2. Panel Discussion Regarding Schedules 13D and 13G Beneficial Ownership Reports – This panel will discuss the SEC’s proposals to shorten the reporting timeline around Schedule 13D and 13G and how that would affect shareholder activism. The panel will also discuss the current practices of certain shareholders disseminating not-yet-public large stakes with a select group of other shareholders, and how the SEC’s proposals around classifying them as a “group” would cut the existing information asymmetry between that group and other shareholders.

3. Panel Discussion Regarding ESG Fund Disclosure – This panel will focus on the importance of ESG and Greenwashing and the heightened role of ESG for investors seeking to understand their impact through investing. Our speakers will provide an overview of the definitions of ESG, sustainable investing, and greenwashing. Additionally, our speakers will discuss what investors should know about the proposed climate disclosure requirements and any observable effects of the proposal.

The agenda also includes time for discussing recommendations on cybersecurity disclosure, climate disclosure, and accounting modernization. That’s a lot of action.

Liz Dunshee