Goldman Sachs (GS) last year dropped its commitment to enforce board diversity for clients going public, and now, according to the Wall Street Journal, it plans to remove diversity requirements for its board as well.
The Wall Street giant is preparing to remove race, gender identity, sexual orientation, and other diversity factors from the criteria its board will consider when identifying potential candidates, the report said, citing people familiar with the matter.
The board’s governance committee currently finds qualified candidates based primarily on four factors, one of which is a broad description of diversity, such as viewpoints, background, work, and military service, in addition to “other demographics” that include a list of DEI factors.
Now it plans to cross off the “other demographics,” including race, gender identity, ethnicity, and sexual orientation, the people said.
Goldman’s (GS) decision followed a behind-the-scenes request from the conservative activist nonprofit National Legal and Policy Center, which owns a small stake in the bank. The group submitted a proposal to the firm in September, seeking to remove the DEI criteria, the people said. The group requested its proposal be included in Goldman’s proxy statement that will be circulated to shareholders ahead of the firm’s annual shareholder meeting this spring.
Goldman informed the NLPC that it plans to remove the DEI criteria, and an agreement was signed between the two parties that also includes the activist group withdrawing its proposal, the report said. Goldman’s board is expected to approve the new language this month.