Goldman Sachs Ends Diversity Rule, Cites Progress in Board Representation

Goldman Sachs has decided to drop its internal diversity rule requiring companies to have at least two diverse board members before floating on the stock market. This policy, which initially required one diverse member and was later expanded, was introduced in 2020 to encourage board diversity.

Goldman Sachs' vice chair, Richard Gnodde, explained that the rule had "served its purpose" as many companies have now embraced diversity. He also mentioned that the need for such a policy was no longer as pressing as it had been. Gnodde further stated that diversity on boards is important for a variety of perspectives but acknowledged that the overall goal of the policy had been achieved.

The decision comes amidst legal challenges to diversity regulations, including a U.S. court ruling that Nasdaq lacked the authority to enforce diversity rules for listed companies. In response to these legal developments, Goldman Sachs has ended its formal board diversity policy.

Despite this change, Gnodde emphasized that the bank's commitment to diversity and progress remains strong. However, he acknowledged broader challenges to diversity initiatives in light of political developments, such as President Trump's efforts to end government diversity programs.

On a related note, Gnodde urged the UK government to accelerate infrastructure projects, stressing the need for immediate action to drive economic growth and foster competition.