State Street Global Advisors has rejected “factually inaccurate” reports that recruiters will need to seek a diversity panel’s approval if they want to hire a white male management candidate over a woman or an ethnic minority.
According to London’s The Times, which reported about the new policy on Sunday, the company aims to triple the number of black, Asian and other minority staff in middle and senior leadership roles by 2023. According to The Times, executives who do not achieve equality targets will be paid lower bonuses.
During the hiring process for middle management roles – a senior vice-president level or above – State Street executives will now reportedly need to assemble a panel of four or five people that includes one woman and, ideally, a non-white person.
“This is now front and central for State Street – it’s on every senior executive’s scorecard,” Jess McNicholas, the bank’s head of inclusion, diversity and corporate citizenship in London, told the Times. The bank has more than 40,000 employees across its 30 global offices.
All leaders are required to show at the annual appraisals their efforts to increase female representation as well as to include colleagues who come from ethnic minorities backgrounds.
McNicholas confirmed that Boston-based company will hire white men. But, the recruiters must first show these panels that they have interviewed applicants of ethnicity and women.
The City A.M. newspaper was later informed by the company that reports about staff wanting special permission for hiring white men candidates had been denied. “factually inaccurate.”However, the paper stated that there will be lower bonuses for those who fail to fulfill diversity mandates.
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As part of the new drive, State Street will also raise spending with diverse suppliers over the next three years – with the firm reportedly pledging to “hold ourselves accountable for strengthening black and Latinx owned businesses.”
These diversity initiatives come even though State Street had previously announced plans to eliminate some 1,200 jobs (equivalent to about 3%) after experiencing declining profits in the Covid-19 pandemic.
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