State Street Pay Equity Disclosure
Our employees are the key drivers of our long-term success. They strengthen our value proposition, 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 our employees, clients and investors. 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.
Today, we take another step in our commitment to transparency, by disclosing information about our pay equity process and results. Additionally, we are disclosing 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 so-called ‘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 2022, 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 to another without adjusting for factors designed to create a like-for-like comparison (the so-called ‘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 72 percent of the median for men, globally, and the median pay for employees of color is 95 percent of the median for white US employees.
Improving our Median Pay Gap requires a cohesive, multi-factor and global strategy. This strategy requires a critical focus on performance management, compensation, hiring practices, and benefits.
See How We Are Putting Our Global Strategy Into Practice:
- We first introduced diversity goals in 2011 and set our most recent three- and five-year goals in 2017. We ended our latest three-year journey in December 2020. Though we fell short on six of eight goals, we are proud of our progress and are committed to meeting our five-year 2022 diversity goals. As part of our commitment to transparency, we publish these goals and our progress towards them on our website.
- Additionally, in 2020, we announced ‘10 Actions to Address Racism and Inequality,’ including goals to increase representation of Black and Latinx employees, and pledged to use our power, our voice and our capital to build a better and more just world. You can read more about our progress on our website.
- See our ESG Report for additional detail on these goals, the goal-setting process and our plans moving forward.
- We connect our performance management to critical enterprise-wide behaviors, including by requiring managers to have performance priorities related to diversity and inclusion.
- We adjust senior executive compensation based on progress against diversity initiatives and other leadership- and talent-related goals.
- See our 2022 Proxy Statement for additional details on how we incorporate our diversity objectives into executive compensation decisions.
- 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.
- 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 behaviors.
- 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.
 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.
 The most recent Pay Equity Review process and the Median Pay Gap Analysis described on the next page covered 98 percent of all active full- and part-time employees. Employees paid on a sales incentive basis, employees of our joint ventures, interns and contractors were excluded from the analysis.