Pay Equity Disclosure

Our employees are a key driver of our long-term performance. They drive our strategy, innovate better ways to serve our clients and safeguard our reputation. We believe that an inclusive and diverse culture where all employees feel valued and engaged makes State Street a desirable place to work, and helps us to attract key talent and retain employees as they grow in their careers.

Our Commitment to Transparency and Accountability

We publish our diversity goals and share our EEO-1 data in our ESG Report to provide transparency to all of our stakeholders, including current and prospective employees, clients, investors and the communities in which we live and work. But disclosing this data is not only about providing helpful information to our stakeholders. It’s also about holding ourselves accountable to the principles of diversity, equity and inclusion.

That is why last year we took another step in our commitment to transparency, by disclosing information about our pay equity process and results. Additionally, we disclosed our median pay gap for women, globally, and for employees of color¹ in the United States. We intend to disclose this information annually moving forward.

How We Promote Pay Equity

As part of our commitment to equal pay for work of equal value, we regularly review our pay practices to assess how women are paid compared to men, globally, and how employees of color are paid compared to their peers in the US. These reviews evaluate total compensation, consisting of base salary and incentive compensation, including equity awards.

Our annual Pay Equity Review process compares pay between “like-for-like” roles, adjusting for factors such as job level, location and job function that make one role different from another (the “adjusted pay gap”). Based on the results of this global Pay Equity Review process, we fine-tune individual compensation decisions, as appropriate.

Our most recent Pay Equity Review process², completed in April 2023, found that there is less than one half of one percent of difference between (i) men and women, globally, and between (ii) employees of color and white employees in the US.

Our Median Pay Gap and How We Will Eliminate It

We also conduct a global Median Pay Gap Analysis, which measures differences in the median pay of one group from another, without adjusting for factors designed to create a like-for-like comparison (the “unadjusted” pay gap). Although we are proud of our actions to promote equal pay for work of equal value, the median pay gap reflects a lower representation of women and employees of color in higher-paid jobs.

Our most recent Median Pay Gap Analysis found that the median pay for women is 70 percent of the median for men, globally, and the median pay for employees of color is 94 percent of the median for white US employees. These results represent slight declines relative to our 2022 Median Pay Gap Analysis, which found that the median pay for women was 72 percent³ of the median for men, globally, and the median pay for employees of color was 95 percent of the median for white US employees. While we are disappointed by this setback, which we hope will be temporary, we remain driven by our mission to foster an inclusive, diverse and equitable environment for our employees, and are encouraged by the strong progress we are making in our initiatives to reduce the Median Pay Gap, as described in more detail below.

Improving our Median Pay Gap requires a cohesive, multi-factor and global strategy. This strategy involves a critical focus on performance management, compensation, hiring practices and benefits.

See How We Are Putting Our Global Strategy Into Practice:

Diversity Goals

• We first introduced diversity goals in 2011 and launched our most recent five-year goals in 2018 with the intention of measuring and increasing representation for women at the assistant vice president (AVP) level and above, globally, and employees of color at the AVP+ level in the US. We made positive progress over the past five years across the majority of these goals, and, as of Q1 2023, we accomplished or exceeded all of our representation goals for employees of color in the US, and one of our four goals for women globally. As part of our commitment to transparency, we publish these goals and our progress toward them on our website.
• We are continuing to work toward full achievement of the goals we set in 2018, and will continue to report transparently on our progress. In the coming months, we will be working to establish longer-term goals that include our broader representation priorities, and are inclusive of other dimensions of diversity.
• Another way we are making progress is by continuing to lean into our “10 Actions to Address Racism and Inequality.” We developed these 10 Actions to confront inequalities and build equity into our workplace and business, paying specific attention to our talent pipeline of Black and Latinx employees and candidates. In 2022, we continued to make tangible progress against these commitments, including improving Black and Latinx representation overall, and achieving a 2.6% increase among our senior management (Senior Vice Presidents and above).
• We also achieved Management Leadership of Tomorrow’s (MLT) Black Equity at Work Bronze Certification – the first and only Global Systemically Important Financial Institution (G-SIFI) to do so, and received plan approval as a launch partner for MLT’s Hispanic Equity at Work Certification program. You can read more about our progress on the 10 Actions on our website.
• See our ESG Report for additional detail on these goals, the goal-setting process and our plans moving forward.

Performance Management

• We connect our culture to performance management by encouraging performance priorities related to critical enterprise-wide behaviors that drive our culture, including by requiring managers to have performance priorities related to diversity and inclusion.

Executive Compensation

• We determine senior executive compensation based, in part, on an evaluation of performance against human capital-related goals, which are intended to promote a focus on factors assessed from both an annual and long-term perspective, such as participation in diversity, equity and inclusion (DEI) initiatives, employee turnover and demonstrated leadership behaviors.
• See our 2023 Proxy Statement for additional details on how we incorporate our human capital-related goals into executive compensation decisions.

Hiring

• To avoid perpetuating pay discrimination, we do not ask for compensation history.
• We require a diverse candidate slate for management-level hires, and encourage the use of diverse candidate slates and interview panels for all hires.

Training

• We provide training to all employees on recognizing unconscious bias. We also provide training to all managers on making fair and consistent compensation decisions, and developing and applying inclusive management behaviours.

Benefits

• We offer parental and caretaker support benefits that provide aid through life’s important events, because we know that parents and other caretakers face barriers to career advancement as they manage the demands of their personal and professional lives.

Contact us to find out more about our commitment to diversity and inclusion, and to developing our people.