Pay equity disclosure

Our employees are key to our long-term performance. They drive our strategy, innovate better ways to serve our clients and act as custodians of our reputation. We believe that an inclusive and diverse culture where all employees feel valued, engaged and empowered makes State Street a more 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 objectives and share our EEO-1 data in our Sustainability 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 (DEI).

That is why, in 2022, 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 our employees who are Black, Indigenous and People of Color (BIPOC)¹ in the United States. We now disclose this information annually.

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 BIPOC employees 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 2024, found that there is less than one percent difference between (i) men and women, globally, and between (ii) BIPOC employees 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).

Our most recent Median Pay Gap Analysis found that the median pay for women is 74 percent of the median for men, globally, and the median pay for BIPOC employees is 95 percent of the median for white US employees. These results reflect a lower representation of women and BIPOC employees in higher-paid jobs, but represent improvements relative to our 2023 Median Pay Gap Analysis, which found that the median pay for women was 70 percent of the median for men, globally, and the median pay for BIPOC employees was 94 percent of the median for white US employees. While we are happy with this improvement, we know there is more work to do and we remain driven by our mission to foster an inclusive, diverse and equitable environment for our employees. We 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:

Diverse representation

• We first introduced diverse representation objectives in 2011 and have just completed our most recent five-year objectives that we launched in 2018 with the intention of measuring and increasing representation for women at the assistant vice president (AVP) level and above, globally, and BIPOC employees at the AVP+ level in the US. As of Q1 2024, we accomplished or exceeded all of our representation objectives for BIPOC employees in the US, and one of our four objectives for women globally.
• In 2023, we established a new diverse representation strategy, including setting aspirational objectives to match market availability for all levels, setting country-level objectives for gender for our largest international locations and setting objectives for BIPOC employees in the US – all informed by data about the available talent pools in which we operate. Later in 2024, we will publish our next set of objectives on our website.
• Another way we are making progress is by continuing to lean in to our “10 Actions.” We developed the 10 Actions to improve systems and processes to build more equity into our workplace and business, paying specific attention to our talent pipeline of Black and Latinx employees and candidates. In 2023, we continued to make tangible progress against these commitments, including improving Black and Latinx representation overall and among our senior management.
• We also continued to make progress in Management Leadership of Tomorrow’s (MLT) Racial Equity at Work Certification Programs. Following achievement of the Black Equity at Work Bronze Certification, we also announced our achievement of MLT’s Hispanic Equity at Work Bronze Certification – the first global Systemically Important Financial Institution (global SIFI) to achieve each certification and the only one to achieve both certifications.
• See our Sustainability Report for additional detail on our diverse representation strategy, the objective-setting process and our plans moving forward.

Performance management

• We connect our culture to performance management by assessing performance both in terms of what objectives employees have accomplished and how each employee accomplished those objectives. When managers provide feedback and a year-end performance rating for their employees, they consider how each employee embodies the critical enterprise-wide behaviors that drive our culture, including with respect to DEI.

Executive compensation

• We determine senior executive compensation based, in part, on an evaluation of performance against human capital-related objectives, which are intended to promote a focus on factors assessed from both an annual and long-term perspective, such as participation in DEI initiatives, employee turnover and demonstrated leadership behaviors.
• See our 2024 Proxy Statement for additional details on how we incorporate our human capital-related objectives into executive compensation decisions.

Hiring and promotion

• To avoid perpetuating pay discrimination, we do not ask for compensation history or details of current compensation during the recruiting process.
• We encourage the use of a diverse candidate slate for management-level hires and both diverse candidate slates and diverse interview panels for all hires.
• In a further step in the evolution of our pay practices to advance our pay equity efforts, beginning in early 2023, we included the pay range (the salary that we reasonably expect to pay for the position) for all US-based job opportunities posted in both internal and external job postings, and are working towards expanding this practice globally.
• And in late 2023, we established a policy intended to build more objectivity into the promotion process, which requires that all promotions for employees at the AVP+ level will be achieved via the job posting process throughout the year, meaning that all promotions at these levels will now be achieved through a competitive application process.

Training

• We make training available to all employees on recognizing unconscious bias and maintaining and strengthening an inclusive culture. We also provide training to all managers on making fair and consistent compensation decisions, and developing and applying inclusive management behaviors.
  

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 DEI, and to developing our people.