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  "documentTitle": "State Street Corporation (STT)",
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  "authorName": "Trian Partners",
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  "presentationDate": "2011-10-16 00:00:00",
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  "notes": "The slide outlines the activist thesis: identifying underperformance due to poor capital allocation and operational inefficiency, followed by a list of corrective actions.",
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      "text": "However, State Street's shareholders paid a high price subsidizing growth in revenue and assets at the expense of profitability, return on invested capital (\"ROIC\") and total shareholder returns",
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      "text": "However, State Street’s shareholders paid a high price subsidizing growth in revenue and assets at the expense of profitability, return on invested capital (“ROIC”) and total shareholder returns",
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      "text": "Trian Fund Management, L.P. and funds and accounts managed by it (collectively, “Trian” or “Trian Partners”) currently beneficially own approximately 3.3% of the outstanding shares of State Street Corporation (“State Street”, “STT” or the “Company”)",
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      "text": "Redefine success; Set explicit 35% EBT margin target by 2014; Prioritize returning capital; Eliminate non-recurring charges; Consider separation of business units; Improve corporate governance",
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      "text": "Despite State Street’s record of underperformance, we believe the Company has significant potential that is ready to be unlocked. We have proposed the following Trian Action Plan to improve shareholder value:",
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      "text": "Acquisitions have been very expensive (average forward price to earnings (“P/E”) multiple of 27.2x(1)); Costs have grown faster than sales; Recurring “non-recurring” charges; Significant shareholder dilution; EPS decline; Negative total shareholder returns",
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      "text": "Trian believes State Street is an exceptional franchise. We appreciate the platform that has been assembled over many years, as well as State Street’s leadership positions across attractive sectors and geographies",
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      "text": "Source: SEC filings, State Street investor presentations, State Street investor conference calls. (1) Represents the weighted average forward acquisition multiple of Investors Financial and Intesa Sanpaolo’s Securities Services business.",
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