Updated 11.09.2009

Related Posts

Detailed Scorecard



Summary: Board Effectiveness at State Street can be improved. A few concerns within the Internal Control Envrionment also need to be addressed.


With State Street having repaid money that it borrowed under TARP, it's CEO Ronald Logue is set to retire in March 2010. President Joseph Hooley takes over the reins of the company.


Subscribed members can view a detailed analysis of individual sections by clicking on the tabs above.

Is the Board equipped to provide effective and Independent oversight?

  1. The Board's Executive Committee is armed with a broad set of powers. It is equipped to execute " all of the powers of the Board during the intervals between meetings of the Board, except as otherwise limited by the laws of the Commonwealth of Massachusetts or this charter." During 2008, while the full board met 16 times, this committee held 14 meetings. Holding excessive executive committee meetings may diminish the ability of the full board from taking decisions.

  2. The Corporate Governance Guidelines require that directors do not serve on more than 4 company boards other than State Street's board. Serving on the board of 5 companies in addition to other professional committments raises the risk that directors may not be able to devote adequate time and attention to either of their committments.

  3. At State Street, there are 2 directors who have been CEO's of non public companies and who also appear to lack any relevant experience in the financial industry. At InvesGuard, we believe that such experience is critical to holding audit committee positions of financial companies.

Does State Street's Audit Committee Charter provide its members with adequate review responsibiities?

  1. State Street's Board Audit Committee Charter contains an important clause that is not usually seen in such Charters but more companies should start including it. This clause requires the Board Audit Committee to review the effect of “off-balance sheet structures on the Company’s financial statements.”. Board level oversight of such critical data increases dependence on financial statements.



    Related Posts

    Detailed Scorecard


Board Size: 14

Board of Directors Compensation ($): $75,000- Annual retainer; $1500- Sitting fees for each Board and committee meeting attended, payable in cash; A deferred common stock award in an amount equal to $110,000 divided by the closing price of the stock on the date awarded (April 30, 2008, for all directors serving on that date), together with additional stock amounts to reflect dividend and distribution amounts paid during deferral.

Total CO2 emissions (metric tons): 2008- 5000; 2007- 4600

Amount received in Government Bailout($): $2 Billion

Amount received in Government Bailout repaid($): Yes

Total CEO compensation for 2008($): $28.7 million

Chief Risk Officer: Maureen J. Miskovic

Chief Risk Officer: Maureen J. Miskovic

Tenure of Chief Risk Officer in this position: Maureen J. Miskovic has held the position of Chief Risk Officer since April 2008.

Changes in Chief Risk Officer over the past 2 years**: This position was newly created with the appointment of Maureen Miskovic.

** Why do we look at this? At certain companies, we have observed the Chief Risk Officer being moved out of his/her position after warning the company on its risky financial practices. One of these companies went out of business soon after. Companies where we observe quick changes to senior risk positions (incase of the finance industry) are high on our ‘watch’ list.