State Street pushes for more White Male discrimination

From the Times:

No country for white men as State Street push diversity

Staff at one of the world's biggest investment companies have to get special approval to hire a white man, rather than a woman or an ethnic-minority candidate.

The policy is part of a drive by State Street, which employs 2,500 people in Ireland, to improve diversity within its middle and senior management. The multinational aims to triple the number of black, Asian and other minority staff in senior roles by 2023, and executives' bonuses will be lower if they do not meet the targets.

The 200-year-old company, in common with financial institutions worldwide, has been dominated by white men. A photograph on its website celebrating State Street Global Advisors' founding in 1978 shows a room full of white men, all wearing shirts and ties.

Jess McNicholas, the bank's head of inclusion, diversity and corporate citizenship in London, said: "This is now front and central for State Street - it's on every senior executive's scorecard.

"All of our leaders have to demonstrate at their annual appraisals what they have done to improve female representation and the number of colleagues from ethnic-minority backgrounds."

When recruiting middle-ranking staff - those at senior vice-president level or above - State Street's recruiters must assemble a panel of four or five people, including one woman and ideally someone of colour. McNicholas said the company would still hire white men but that recruiters would need to show that women and ethnic-minority candidates had been interviewed by diverse panels.

State Street employs 39,400 people in 27 countries and has offices in Dublin, Drogheda, Kilkenny and Naas. It is recognised as one of Ireland's leading financial services companies.

The bank has also said it will increase spending with diverse suppliers over the next three years, pledging to "hold ourselves accountable for strengthening black and Latinx owned businesses".

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Comments (30)

Most Helpful
  • VP in AM - Equities
Nov 10, 2021 - 2:22pm

Utterly disgusting racism from state street.

There is a huge problem particularly in somewhere like Ireland when these ideas are imported from the US. 93% of the Irish population is white and 1.4% are black. A "representative" workforce in Ireland would be overwhelmingly (ie. 93%) white. You apply ideas blindly from a much more diverse country (US) to a country with very little diversity. And this is not to say that it is the right thing in the USA, either.

So what happens - you see huge discrimination and racism against white people. I honestly feel deeply sorry for a white boy early in life today.

I think no one here is against equal opportunity, treating people fairly, and all are against racism in all forms. These racist policies from companies like state street need to stop, and we need people to start speaking out against them.

Nov 12, 2021 - 8:37am

Ok but.... You don't even dare to say this under your nickname here. Not even your real name.

Someone has to speak out? Why should someone do the job for you? Barrage companies with lawsuits for racial discrimination. You'd win. Biden is already 0-2 in courts over things like this

Never discuss with idiots, first they drag you at their level, then they beat you with experience.

  • 2
Nov 11, 2021 - 1:23pm

This comes across as incredibly whiny to be honest. These people care about creating value for shareholders. nowhere is diversification of views more important than in investing. You cannot have a black swan if you have somebody who knows there are black swans. Of course this also means that diversity is much more than just surface-level (ethnicity, gender, and other visible traits) but should also include other metrics such as how people approach problems and generally think about things, and that is something contemporary diversity policies still fail at sadly. Nothing you can do but your best.

  • VP in AM - Equities
Nov 11, 2021 - 3:35pm

So not liking racism is "whiny"? If you said that any other ethnic group complaining about racism was "whiny" it would rightly be considered a disgusting thing to say. This double standard has to stop.

99% of the "diversity" is not diversity at all. They just hire women and ethnic minorities from exactly the same backgrounds as the white men who they have hired for decades. Hiring a white woman whose parents are wealthy, went to an expensive private school then a top university, does not diversify views - you just have the female equivalent of the white man you have hired for decades. For ethnic minorities it is the same. You generate no diversity of thought or views whatsoever by doing this.

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  • VP in AM - Equities
Nov 11, 2021 - 4:30pm

Also, don't think for one second that this is being done to improve fund performance. I let you off for being niave as it says you are an intern - but DO NOT be niave here.

Management of State street are doing this because:

- Every company has a D&I policy, and if they don't have one, they will look bad and get attacked by the woke mob. Conversely, no one pushes back on them having one. So they have D&I initiatives. This is probably the main reason.

- Fund allocators are becoming increasingly racist and look for "diversity" when allocating capital to fund managers. We are starting to see this across industries with clients looking for "diverse" teams. This is a particularly disgusting and racist area that is now evolving.

- They probably figure that if they increase women/ ethnic minority representation by say 10ppt, it won't matter that much to fund/ sales performance (the 2 things that matter in AM), as average quality of employee will deteriorate (as you take employees only from a racially/ gender defined pool and not the whole candidate pool), but in the grand scheme of things 10ppt doesn't change too much. The managers of the funds that matter (the large funds) and the heads of sales will remain the current people (likely mostly white men) and when they retire, the replacement process will remain a meritocracy. However they will increasingly allocate lower roles (analyst, junior PM, regular sales) to women/ ethnic minorities and exclude white men from these roles, as they don't matter that much and make the firm look better from a marketing point of view, so the lack of meritocracy in the appointments is offset by the better PR.

Nov 13, 2021 - 5:12am

and to follow up, I think it's pretty innovative way of thinking when institutions and companies use their dollars to help advance their underlying mission. If Blackrock believes in climate change and the environment, as do their clients that give them money to manage, then not simply paying lip service, but using their capital to advance their mission makes sense. 

We're not lawyers. We're investment bankers. We didn't go to Harvard. We Went to Wharton!
  • 5
Nov 11, 2021 - 3:16pm

We need to defend The Our Democracy™ and protect the Sacred Capital from the greatest domestic terror threat in human history, which are the poor white people from rural areas who support the Worse than 9/11 Horrific Insurrection™ On our Sacred Capital™ and tried to Coup™ The Our Democracy and oppress the Jabbed Indigenous Black Bodies of Color™. 

Anyone who disagrees with what State Street is doing is a dangerous neo-Nazi peddling Russian information to attack the Experts™ and the Institutions of The Our Democracy™, and is anti-American/

"Work ethic, work ethic" - Vince Vaughn

  • 3
Nov 11, 2021 - 3:56pm

This is stupid as fuck and anyhow, there will still be no diversity (good), because everyone who works at top financial institutions regardless of gender and skin tone will have all went to the same schools (Eton, Westminster, Rosey, Andover, Exeter), same half-dozen or so universities (WYD/Oxford/Cambridge/LSE), vacation in the same spots (Nantucket, Hamptons), taught by the same professors (HSW/INSEAD/LBS), so there's no "poverty style of thinking" found in the low, middle and middle-upper classes who will dilute the scheming of financial institutions.

Nov 12, 2021 - 11:49am

They understand this perfectly well but don't change because this is all performative pejorative bs to begin with. They don't actually think that diversity improves performance.

"Beware of false prophets, who come to you in sheep's clothing but inwardly are ravenous wolves. You will recognize them by their fruits. Are grapes gathered from thornbushes, or figs from thistles? So, every healthy tree bears good fruit, but the diseased tree bears bad fruit. A healthy tree cannot bear bad fruit, nor can a diseased tree bear good fruit."

  • Associate 1 in VC
Nov 12, 2021 - 9:28am

Is this true? Apparently State Street is denying this and saying they have a diversity mission but not this exact rule. Maybe they're just trying to hide it lmao.

  • Quant in AM - Other
Nov 12, 2021 - 11:58am

State Street is based in Boston. 

The source of the article is an Irish publication.

 I sure hope they don't mean to do this at their Irish sites. That'd be f***ing dumb.

Is this supposed to be a global effort or within certain countries?

Nov 12, 2021 - 12:42pm

Do people still believe that major financial institutions just happen to push this shit because they think it will win them new customers? 

They are one of the singularly most powerful institutions on the planet whose assets sometimes span the line of public and private interest. Think about it for a second.

"Work ethic, work ethic" - Vince Vaughn

  • 1
  • Partner in RE - Comm
Nov 12, 2021 - 7:20pm

I'm not in banking, but it's sort of obvious what has happened here.  First of all, Occupy movement seemed to die off at about the same time this whole woke nonsense started, which is hardly a coincidence imo.

Secondly, the government is handing money out, indirectly all over the place -- through bond purchases, or via ETF activity. ESG investing is all the rage, and if you're woke, you will be rewarded by the Vanguard/Blackrock/State Street gods, who will prop your stock up and feed your wealth. 

That's the root cause of all this nonsense. Some jerkoff(s) have some vested interest in undermining the USA all the while getting filthy rich doing it, and they are demoting meritocracy as their main catalyst. 

Anyways, I pulled my money from all the SPDR funds I had and let them know it. It won't make a lick of difference, but I feel that I did my part for their bs. And I'm an immigrant.  Ruining the country these mofos....

BTW -- where do people get all their ESG data from when they're allocating capital?  Seems like the likely root cause of all this.... 

  • Partner in RE - Comm
Nov 13, 2021 - 7:11am

But who compiles the data?  Is it Bloomberg?   Or don't tell me it's done/on Aladdin.  If it is then it's pretty obvious what is happening here and who the jerk is.  

  • Analyst 1 in PE - LBOs
Nov 13, 2021 - 4:36am

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Nov 13, 2021 - 7:10am

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Never discuss with idiots, first they drag you at their level, then they beat you with experience.

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