State Street’s asset management unit has made a significant change in its proxy voting guidance by dropping targets for the number of women and minority directors on corporate boards. This move aligns with other major asset managers who are facing political pressure to slow down the pace of diversity in boardrooms.
The decision is particularly striking for State Street, known for its iconic “Fearless Girl” statue installed in Manhattan’s financial district in 2017 as part of a campaign to promote gender diversity in business. The statue symbolized the need for more women in leadership positions in the corporate world.
Previously, State Street’s global proxy voting policy required boards of companies in major indexes to have at least 30% female directors, with larger S&P 500 companies expected to have at least one racial or ethnic minority director. However, the new guidance as of March 2025 no longer includes these specific targets.
Instead, State Street now believes that board nominating committees are in the best position to determine the composition of the board. This shift in approach suggests a move towards a more flexible and decentralized decision-making process when it comes to board diversity.
A State Street representative declined to comment on the change in proxy voting guidance. This change reflects a broader trend among asset managers to give more autonomy to companies in shaping their board compositions, potentially slowing down the progress towards greater diversity in corporate leadership.
