A Boston-based investing giant has adopted a policy forcing its executives and managers to bypass white men for employment in favor of Black, Asian, and other minority applicants.
State Street Global Advisors is one of the world’s largest investment companies, and its parent company, State Street Corporation, employs around 40,000 people globally. Its new hiring policies have been announced as part of a goal to increase by three-fold the number of minorities holding senior management positions by 2023.
The new corporate policy requires that white males only be hired after reviewing the candidate by a panel of five people, including at least one non-white and one female. The review of a white male candidate is only permitted before the panel after substantial groups of other candidates who are not white males have been evaluated for employment first.
Any company executives, middle managers, or senior managers who fail to follow the new race-based hiring rules will be subject to reductions in their bonus compensation.
State Street’s head of “inclusion, diversity, and corporate citizenship” in its London office, Jess McNicholas, said that the new policy is “front and center” and is on every executive’s “scorecard.” She added that every leader in the company will be expected to show at their annual appraisal what they have done to increase representation in the company by women and “ethnic-minority backgrounds.”
While the firm reportedly denied hiring officers need “special approval” for hires of white males, it did affirm a quota system that gives preferences to certain ethnicities to help hold the company “accountable” for bringing strength to businesses owned by blacks and other minorities.
A corporate spokesperson said in a statement that State Street is working to “ensure a level playing field” in hiring decisions that are “not biased.” The statement added that the company believes “inclusion, equity, and diversity” are critical components to the firm’s success.
State Street is the investment firm that in 2017 hired an advertising agency to erect a statue in front of the New York Stock Exchange known as “Fearless Girl.” The statue takes a defiant posture toward the famous bull statue in front of the Exchange, suggesting that women should have a more prevalent presence on Wall Street.