'State Street Drops Diversity Targets for Corporate Boards'
State Street's asset management unit has dropped targets for the number of women and minority directors who should serve on corporate boards, according to new proxy voting guidance posted on its website. The change was made in line with other major asset managers under political pressure, but it is striking given State Street's previous efforts to increase gender diversity through its "Fearless Girl" statue campaign. The global proxy voting policy of State Street Global Advisors now relies on board nominating committees to determine composition, rather than setting specific targets.
- This shift in focus highlights the tension between the desire for greater corporate diversity and the need for effective governance, raising questions about how companies will balance these competing priorities.
- Will the lack of explicit targets lead to a more nuanced approach to diversity and inclusion, or will it result in a watering down of efforts to address systemic inequalities in the corporate world?