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:
Contact us to find out more about our commitment to diversity and inclusion, and to developing our people.
1 Employees of color includes US employees who have self-identified as one of the following: American Indian or Alaska Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander, Two or More Races.
2 The most recent Pay Equity Review process and the Median Pay Gap Analysis described in the next section covered 98 percent of all active full- and part-time employees. A small population of employees paid on a sales incentive basis, employees of our joint ventures, interns and contractors were excluded from the analysis.
3 Absent the impact of currency translation, which caused a reduction to the US dollar-denominated median pay of our non-US employees, the median pay for women would have been 72 percent of the median for men, globally.