Goldman Sachs to drop race, gender and LGBTQ+ criteria from board evaluations

"Goldman Sachs is removing race, gender and other diversity-related considerations when evaluating prospective candidates for its executive board after pressure from an activist shareholder group to remove the criteria. The National Legal and Policy Center (NLPC), a small Goldman shareholder, quietly submitted a request to the company last September asking the bank to eliminate its diversity, equity and inclusion (DEI) board criteria. According to a Wall Street Journal report, Goldman recently informed the group that it plans to remove the DEI criteria, and the two parties signed an agreement under which the NLPC would withdraw its proposal."

"Currently, the board's governance committee evaluates qualified candidates based primarily on four factors. One of those includes a broad description of diversity, such as viewpoints, background and military service, in addition to other demographics. That other demographics category reportedly included race, gender identity, ethnicity and sexual orientation, but would be removed under the proposed change."

"Earlier this month, the NLPC announced it reached similar deals with American Express and John Deere to eliminate DEI for Board candidates. The group submitted shareholder proposals to 11 Fortune 500 companies, including Goldman, challenging their DEI initiatives. Both Goldman and the NLPC did not immediately respond to a request for comment. The shift follows other recent changes at the bank. Last year, Goldman scrapped a policy meant to encourage diversity on the boards of companies it takes public. The move also reflects a broader pullback from DEI initiatives across corporate America since Donald Trump returned to office last January and launched a campaign against DEI practices in both the government and the private sector."

Goldman Sachs will eliminate race, gender and other DEI-related considerations from evaluations of prospective executive board candidates following a request from the National Legal and Policy Center (NLPC). The NLPC submitted the request in September and reached an agreement with Goldman in which the NLPC would withdraw its shareholder proposal. The bank’s governance committee presently considers diversity including viewpoints, background, military service and demographics such as race and gender, which would be removed. The NLPC secured similar agreements with other companies and has challenged DEI initiatives at multiple Fortune 500 firms. The change follows a broader corporate pullback from DEI policies.

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