Foreword.

The Chief Human Resource Officer/Chief People Officer role has evolved significantly in recent years. As a critical member of the CEO’s leadership team, in many markets, the role now encompasses not only the People & Culture agenda, but also such critical areas as Sustainability, Internal Communications, External Communications, Health & Safety, Workplace and Transformation.

For shareholders, non-executive and executive directors, remuneration remains of critical importance. In certain markets, the CHRO/CPO’s strategic leadership of the remuneration agenda uniquely positions them to transition to Boards as a Remuneration Committee Chair. However, as this report demonstrates, it is their broader business contribution that has increased the representation of this community on global Boards in certain markets.

In Australia, there is growing momentum behind the appointment of CHRO/CPOs to listed and private boards. While perhaps not yet as established as in the UK, the pathway is becoming clearer, particularly through Remuneration Committee roles where senior HR leaders bring critical governance and stakeholder insight. Increasingly, Australian boards are recognising the broader value of CPOs in strategic transformation, culture, and ESG: areas of increasing board focus.

From a US perspective, as of 2023, fewer than 3% of public company board seats in the Fortune 1000 are held by current or former CHROs. However, the governance needs for enterprise risk, human capital resiliency, and ethical standards around the workforce and AI make independent directors with CHRO/CPO experience particularly attractive, specifically on the Nominations, Governance, and Audit Committees.

The Chartered Institute of Personnel and Development’s recent review of FTSE350 Board composition showed that 25% of Boards have at least one individual with HR experience. In almost all cases, the HR professional was also represented on the Remuneration Committee. Within the UK market, there is now a clear route from CHRO/CPO to RemCo Chair and onto SID. Independently, there is recognised progression from SID to Board Chair. We are therefore very excited that the CHRO/CPO community has a path to a plural career, which could culminate in chairing a Board.