Boards of directors of profit and non-profit organizations have been going through dramatic changes propelled by Sarbanes-Oxley, new regulations from the SEC and NYSE, board ratings by ISS and other organizations, and, of course, lawsuits.  Privately held companies and non-profit firms are beginning to be held to these standards primarily developed for public companies.  Section 404 of Sarbanes-Oxley has required financial and IT departments to work closely with board audit committees.

Now, with executive and directors' compensation under fire and the resulting new, complex SEC rules and IRS Section 409A, HR executives are working closely with boards and compensation committees.  The recent problems with timing of stock options highlight the role of HR in working on compensation issues.  The attention being paid to HR issues by boards is not all about regulation.  Many boards, as part of their risk assessment, are paying more attention to leadership development and succession planning - certainly a good trend.

It is important for HR and compensation executives to stay informed on these issues and learn how to work effectively with their board committees.  We hope these articles will help.