State Street Corporation · NYSE:STT
State Street — Proxy Contest (May 2020)
9 slides from State Street's proxy contest presentation, May 6, 2020
Slide 1: Executive Compensation Considerations
For additional information, please see the Additional Soliciting Materials filed with the Securities and Exchange Commission on April 9, 2020, entitled “Overview of State Street Corporation’s Corporate Governance and Executive Compensation Practices” Executive Compensation Considerations 2020 Annual
Slide 2: Key Messages
Key Messages ❑ The HRC actively engages with our shareholders on compensation and governance issues and their perspectives inform the HRC’s compensation design decisions Shareholder feedback ❑ This feedback has informed key changes over the last several years, including adding pre- is integral to ou
Slide 3: We actively engage with our shareholders on compensation and governance issues
We actively engage with our shareholders on compensation and governance issues and their perspectives inform the HRC’s compensation design decisions • We engage our largest shareholders annually to receive their specific perspectives on our compensation program and governance practices • In 2019, we
Slide 4: Mr. O'Hanley sharpened State Street's focus on strategic priorities in 2019
Mr. O'Hanley sharpened State Street's focus on strategic priorities in 2019 contemporaneously with his appointment as CEO • At the end of 2018, State Street faced significant market weakness when U.S. and international markets fell 6% and greater than 15%, respectively, and also faced greater than a
Slide 5: Our incentive compensation program benefits shareholders by providing a direct link between pay and performance
Our incentive compensation program benefits shareholders by providing a direct link between executive pay and performance • The HRC sets a single incentive target for each named executive officer (NEO); actual awards vary based on individual and corporate results − Separate individual and corporate
Slide 6: Mr. O'Hanley's 2019 total compensation was appropriate based on his leadership
Mr. O’Hanley’s 2019 total compensation was appropriate based on his leadership experience, individual and company performance and market practices • Mr. O’Hanley’s target compensation reflects his years of leadership experience and was set below the median of our peer companies • Based upon corporat
Slide 7: The HRC's incentive compensation decisions are based on performance and reflect the shareholder experience
The HRC’s incentive compensation decisions are based on performance and reflect the shareholder experience • CEO target incentive compensation has remained essentially flat over the past five years1 • CEO actual incentive compensation awarded for four of the last five years was below target 2019 Per
Slide 8: The program design drives alignment in realizable pay and shareholder outcomes
The program design drives alignment in realizable pay and shareholder outcomes • Realizable pay1 is today’s value of prior awards granted, as shown below for 2015 to 2018 • Realizable pay and shareholder interests are aligned, as 75% of Mr. O’Hanley’s incentive compensation is awarded in deferred eq
Slide 9: Item 2 – Approval of Advisory Proposal on Executive Compensation
The Board of Directors unanimously recommends that you vote FOR Item 2 – Approval of Advisory Proposal on Executive Compensation • We regularly review and refine our compensation and governance practices considering several factors, including feedback from ongoing engagement with our shareholders •