Goldman Sachs Plans to Remove Board Diversity Criteria This Month
Goldman Sachs will drop race, gender identity and sexual orientation criteria from board selection, with governance committee approval expected this month after settling with the National Legal and Policy Center. It revised its One Million Black Women program, removing race references and pre-IPO board diversity requirements for U.S. European companies.
1. Board Selection Criteria Change
Goldman Sachs will eliminate race, gender identity, sexual orientation and other diversity criteria from its board member selection process, subject to governance committee approval this month. The change removes DEI factors previously used to guide appointments to the firm’s board.
2. Shareholder Agreement Detail
The National Legal and Policy Center, a minor activist shareholder, submitted a proposal last September to remove board diversity criteria and then reached a formal agreement with Goldman Sachs. Under the deal, NLPC withdrew its proposal in exchange for the bank’s commitment to revise its selection guidelines.
3. One Million Black Women Program Revision
The bank also updated its One Million Black Women program launched in 2021, removing race references and scrapping the requirement for U.S. and Western European companies to have diverse boards in order to go public with Goldman Sachs. These revisions reflect a broader shift in the firm’s approach to equity considerations in underwriting.