State Street Corporation · NYSE:STT
State Street — Shareholder Meeting (April 2020)
23 slides from State Street's shareholder meeting presentation, Apr 9, 2020
Slide 1: Overview of State Street Corporation's Corporate Governance and Executive Compensation Practices
Overview of State Street Corporation’s Corporate Governance and Executive Compensation Practices 2020 Annual Meeting of Shareholders: May 20, 2020
Slide 2: Table of Contents
Table of Contents Page State Street at a Glance 3 State Street’s Response to COVID-19 4 Proxy Statement Executive Summary 5 2019 Financial Performance Highlights 6 Corporate Governance 7 Corporate Responsibility 11 Executive Compensation 12 Items Included For Vote 17 Appendix 18 Page 2 of 23
Slide 3: State Street at a Glance
State Street at a Glance Refer to the Appendix included with this presentation for endnotes 1 to 7 Page 3 of 23
Slide 4: State Street's Response to COVID-19
State Street’s Response to COVID-19 • Amidst the COVID-19 pandemic and related market volatility, we have been dedicated to supporting our employees, our company, our clients and the financial markets − The safety and health of our employees remain our first priority. More than 85% of our ~39,000 em
Slide 5: Proxy Statement Executive Summary
Proxy Statement Executive Summary • Our Board is committed to strong corporate governance practices and is dedicated to maintaining State Street’s reputation for quality, integrity and high ethical standards • Each of our directors brings to the Board a variety of qualifications and skills and, coll
Slide 6: 2019 Financial Performance Highlights
2019 Financial Performance Highlights 2019 began with significant challenges, including financial market weakness, falling interest rates Due to these actions and the steady recovery of and increased client fee pricing pressure. In the U.S. average market levels in 2019, our financial face of these
Slide 7: Maintaining State Street's Reputation for Quality, Integrity and High Ethical Standards
Our Board is Committed to Strong Corporate Governance Practices and Intent on Maintaining State Street’s Reputation for Quality, Integrity and High Ethical Standards State Street’s Board oversees the sound management of the Company and the directors have the responsibility to exercise their business
Slide 8: Our Independent Lead Director
Our Independent Lead Director Role of the Independent Lead Director • Elected annually by the independent directors to serve a one-year term • Expected to participate in, and attend, meetings of all of the Board’s committees, providing valuable committee membership overlap to enable optimal agenda I
Slide 9: Board Leadership Structure Combines Strong Independent Lead Director Role with Combined CEO-Chairman
Board Leadership Structure Combines Strong Independent Lead Director Role with Combined CEO-Chairman The Board of Directors believes that Mr. O’Hanley’s role as Chairman, together with a strong independent Lead Director, Amelia Fawcett, is currently the most effective leadership structure for State
Slide 10: Board Composition Through Refreshment Leads To Effective Oversight
Attention to Board Composition Through Refreshment Leads To Effective Oversight from Highly Engaged and Independent Directors • The Board regularly reviews its composition and size to Newly Appointed Board Member for 2019 evaluate its overall effectiveness and alignment with Company strategy Career
Slide 11: State Street's Continued Commitment to Social Responsibility
State Street’s Continued Commitment to Social Responsibility and its Criticality to Our Long-Term Success 2019 Corporate Responsibility Snapshot ✓ The Board monitors activities and practices on ESG related matters ✓ Sustainable growth comes from operating with absolute integrity and in a way that re
Slide 12: Compensation Program Principles and Practices Aligned with Shareholder Interests
Compensation Program Principles and Practices Aligned with Shareholder Interests Our executive compensation practices are designed to support good governance, drive long-term shareholder value and financial stability and mitigate against excessive risk-taking, and we are focused on aligning these pr
Slide 13: New Compensation Program Structure for 2019
New Compensation Program Structure for 2019 Provides Clearer Accountability for Results and Strengthens Pay for Performance Alignment In response to feedback received from shareholders and to better align pay outcomes with individual and corporate performance for the year, the Human Resources Commit
Slide 14: Executive Compensation Program Strongly Aligns Pay and Performance
Executive Compensation Program Strongly Aligns Pay and Performance Given Mr. O’Hanley’s responsibility for overall company performance, he was awarded equity- and cash- based incentive elements below target. The Human Resources Committee applied a 62.5% factor against target for the corporate compon
Slide 15: High Deferral Levels, Use of Equity-Based Compensation and Design of Performance-Based RSUs
High Deferral Levels, Use of Equity-Based Compensation and Design of Performance- Based RSUs Align Pay Outcomes with Our Long-Term Performance and Financial Goals We maintain significant levels of deferred and equity-based compensation for our executives and continue to deliver a higher percentage o
Slide 16: Incentive Compensation is Aligned with Appropriate Risk Management Principles
Incentive Compensation is Aligned with Appropriate Risk Management Principles and Long-Term Success We provide incentives that are designed not to encourage unnecessary or excessive risk-taking and apply related process controls and oversight ✓ Human Resources Committee Interaction with Examining an
Slide 17: Items Included for Vote
The Board of Directors unanimously recommends that you vote FOR Item 1 – Election of Directors Item 2 – Approval of Advisory Proposal on Executive Compensation ✓ Each director elected at the 2020 annual meeting of ✓ Our executive compensation program strongly aligns pay shareholders will serve until
Slide 18: Appendix
Appendix Information Classification: Confidential Page 18 of 23
Slide 19: Endnotes
Endnotes (1) As of December 31, 2019 (2) This figure is presented as of December 31, 2019 and includes approximately $45 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Stre
Slide 20: Reconciliation of Non-GAAP Measures [1 of 4]
Reconciliation of Non-GAAP Measures [1 of 4] In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents certain financial information on a basis that excludes or adjusts one or more items from GAAP. T
Slide 21: Reconciliation of Non-GAAP Measures [2 of 4]
Reconciliation of Non-GAAP Measures [2 of 4] Page 21 of 23
Slide 22: Reconciliation of Non-GAAP Measures [3 of 4]
Reconciliation of Non-GAAP Measures [3 of 4] Page 22 of 23
Slide 23: Reconciliation of Non-GAAP Measures [4 of 4]
Reconciliation of Non-GAAP Measures [4 of 4] Page 23 of 23