- The financial institution that commissioned the popular Fearless Girl statue is seemingly backing off its diversity requirements. State Street will no longer require companies in its index fund to have women make up 30% of the board. It’s the latest of many companies walking back DEI programs.
The company behind a popular statue that came to stand for gender diversity in the workplace has seemingly retreated from its previous diversity requirements.
State Street, which commissioned the Fearless Girl statue eight years ago, has updated its proxy voting and engagement policy. A year ago, the company said it expected boards of directors on companies it held in its index fund to have at least 30% of those directors be women. An updated policy, released earlier this month, has now done away with that requirement.
In its place, the company now says “nominating committees are best placed to determining the most effective board composition and we encourage companies to ensure that there are sufficient levels of diverse experiences and perspectives represented in the boardroom.”
State Street is also no longer requiring companies to have DEI goals, nor disclose the gender and racial makeup of their board.
State Street, in a statement to Fortune, said: “We annually review our proxy voting and engagement policy to ensure alignment with global protocols and local laws and regulations, guided by our core principles of effective board oversight, disclosure, and shareholder protection and a singular focus on value creation.”
Fearless Girl, with her hands on her hips and ponytail flowing in the breeze, quickly became an icon when she first appeared in 2017. Initially placed in a stare-off with the well-known Charging Bull statue in Manhattan’s Financial District, she was later moved to outside of the New York Stock Exchange, and remains popular with visitors today.
State Street is hardly alone. Several firms have dropped DEI programs and requirements following Donald Trump’s order for government agencies to do away with the programs. A limited number of companies, including Apple and Costco, have reaffirmed their plans to continue with policies to ensure diversity and inclusion in their workforce and executive makeup.
State Street, though, did not always back gender diversity. A 2019 report from Morningstar showed that on eight out of 10 shareholder resolutions related to gender diversity that State Street’s Gender Diversity Index ETF, known as SHE, faced between July 2015 and June 2018, it either voted no or abstained.