State Street wins corporate governance vote
US – State Street Corp. has won a vote at its annual general meeting seeking changes to its board structure – which came as the group’s top executive said institutional investors are dealing with “enormous” forces.
According to a filing at the Securities and Exchange Commission, State Street shareholder Patrick Jorstad had sought to repeal the Boston-based corporation’s “staggered board structure” and adopt the annual election of directors. He said was “increasingly concerned about the corporate governance practices at State Street”.
State Street said its board structure had “helped preserve a long-term focus by our directors for the benefit of our stockholders”. The board had unanimously recommended a vote against the proposals.
"The forces institutional investors are dealing with today are enormous," said David Spina, State Street’s chairman and chief executive. "We work hard to ensure that we not only meet our clients' current needs, but anticipate their future needs as well. As a result, we're an essential part of their long-term strategies."
He told the meeting that the group was “successful in achieving its business objectives in 2003 despite difficult economic and geopolitical conditions”.
Earlier this month State Street reported overall first-quarter net income of 217 million dollars, up from 96 million dollars a year ago. Revenue was 1.2 billion dollars, against one billion dollars.
"State Street's most important competitive advantage lies in our active, long-term relationships with many of the world's most sophisticated investors," Spina said.
"Our ongoing collaboration with our clients is a powerful source of innovation and energy for our respective organizations, and for the global financial services industry as a whole."