State Street, the investment firm behind the iconic Fearless Girl statue, has significantly scaled back its diversity goals. The company no longer requires the companies it invests in to have a minimum of 30% female directors on their boards. In its recent proxy voting and engagement policy, State Street also removed previous requirements for companies to disclose the gender, racial, and ethnic composition of their boards.
Instead, the firm now states that nominating committees are best positioned to determine the most effective board composition. This change in policy reflects a broader trend among US companies retreating from diversity, equity, and inclusion (DEI) goals. Companies such as McDonald’s, Target, Meta, and Amazon have also publicly reduced or eliminated their DEI commitments.
The Fearless Girl statue, commissioned in 2017 just before the #MeToo movement, was part of an advertising campaign for a State Street investment fund focused on companies with female leaders.
State Street alters diversity expectations
Despite its symbolic significance, the statue’s commissioning firm ended up in a legal dispute with the artist, Kristen Visbal, over breach of contract and trademark infringement.
They reached a settlement last year. State Street did not respond to requests for comment but stated that it reviews its policies annually to align with global protocols and local regulations, guided by principles of effective board oversight, disclosure, shareholder protection, and value creation. This rollback is part of a larger trend influenced by the current political climate.
Since the election of Donald Trump, who has promised to curtail DEI initiatives in the private sector, many companies have stepped back from their diversity commitments. However, some companies, like Costco and Apple, have fought against proposals from conservative shareholder activists aiming to weaken DEI policies. American consumers have also begun to respond negatively to companies that abandon their DEI programs, leading to boycotts against brands like Target and Walmart.
The broader impact of these changes on corporate culture and workplace diversity remains to be seen as companies navigate the evolving landscape of social responsibility and regulatory expectations.