Boston, MA 05/19/2014 (wallstreetpr) – State Street Corporation (NYSE:STT) has ranked the top in eight categories, in the recentGlobal Investor ISF’s 2014 Transition Management Survey.
Top ranking in eight categories
In a recent Global Investor ISF’s 2014 Transition Management survey, State Street ranked top in eight categories. Transition managers in the world are ranked by the survey. The company was the top performing transition manager globally in different service categories.
Four hundred jobs to be eliminated
State Street will soon cut 400 jobs. This is the fourth round of job cuts since 2010. The company wants to reduce expenses to fight the low interest rates. Since November 2010, the company has already cut 2,900 jobs. The job cuts will result in $22 million, in savings. During the first quarter, the company paid $72 million in severance expenses which took the net income 22% below to $356 million.
Fighting negative impact of low interest rate
State Street have been fighting low-interest rate for the last three years. State Street Corporation (NYSE:STT) has combine cost-cutting and gains in global equity market to get over the negative impact of lower rates of interest. Low interest rates reduce the ability of custody banks like State Street to lend and invest money to make money.
Constrained environment
According to State Street, the first quarter results were directly affected by constrained environment for investment.
Dividend for common stock and C and D Series
The company announced a quarterly cash dividend. The dividend is $0.30per share of common stock. This is a 15% increase in dividend. In the 1Q2014, the dividend was $0.26 per share. State Street Corporation (NYSE:STT) also declared cash dividend on two types of non-cumulative perpetual preferred stocks- Series C and Series D. The dividend is $1,312.50 per share of Series C stocks. The cash dividend in case of Series D stocks is $1,655.28 per share.
