Goldman Sachs May Change Diversity Evaluation Criteria
Goldman Sachs is considering eliminating race, gender identity, sexual orientation, and other diversity metrics when assessing board candidates. This move appears to be a response to the pressure from conservative activists as part of a broader trend following President Donald Trump’s efforts against corporate diversity, equity, and inclusion (DEI) programs.
If shareholders approve these changes in April, it would represent a notable shift in Goldman’s stance on DEI initiatives, which have faced criticism since Trump took office again last year.
The proposed change stems from a request by the National Law and Policy Center, as reported by a financial news outlet.
This conservative nonprofit, which holds a minor stake in the bank, has been an outspoken critic of left-leaning DEI policies that gained traction in corporate America after the 2020 death of George Floyd and the subsequent Black Lives Matter movement.
Currently, Goldman’s board is considering candidates based on broad definitions of diversity, including factors like perspective and background, alongside various demographics.
Neither Goldman Sachs nor the National Law and Policy Center provided comments when approached.
In its 2023 Talent Strategy report, Goldman expressed a desire for gender balance across its global workforce and aimed for specific racial representation, targeting 11% Black and 14% Hispanic demographics in the U.S.
However, a recent government pushback against these DEI practices has shifted attitudes at many leading companies.
Critics claim that such diversity quotas may undermine meritocracy, while supporters argue that rolling back these initiatives is a move backward for equality in corporate governance.
The Post has previously reported on a noticeable trend among Wall Street firms. For example, last February, it was revealed that Goldman was distancing itself from DEI language on its website and in official documents.
Following Trump’s election, the bank also dropped a requirement mandating companies to have at least two diverse board members before receiving advice on public offerings.
This shift aligns with a broader industry movement. Other major firms, like Morgan Stanley and Citigroup, have also reduced their diversity initiatives and softened their hiring goals amid increased government scrutiny.
In the backdrop, Trump has prioritized efforts against DEI, implementing an executive order that disallows federal funding for related training and encourages the private sector to scale back these programs.
In a related development, the left-leaning hedge fund DE Shaw terminated its head of diversity, Maja Hazel, last September, reportedly due to internal pressures following its earlier rigid DEI stance. The firm also removed all references to its diversity initiatives from its website after inquiries pointed out possible audits and penalties.
