Goldman Sachs Ditches Internal Diversity Requirement as Corporate Landscape Changes

Goldman Sachs has decided to eliminate its internal diversity requirement for advising companies on flotations, stating the policy has served its purpose as corporate boards have increasingly embraced diversity. In a recent interview, Richard Gnodde, the bank's international chief, acknowledged the positive change in board diversity since the policy's introduction in 2020. The decision follows legal challenges regarding board diversity mandates, with Gnodde emphasizing that while Goldman remains committed to advancing diversity, adjustments are necessary in light of current marketplace dynamics. He also highlighted the need for the UK government to prioritize infrastructure projects to bolster economic growth amid ongoing uncertainties related to U.S. policies.

In his remarks, Gnodde identified that uncertainty stemming from trade policies has negatively affected firms’ willingness to invest, suggesting that while aspirations for growth are present, immediate action is necessary. He advocated for expedited infrastructure projects, urging the government to present tangible opportunities for the private sector to engage in public initiatives. Notably, he hinted at the necessity for consolidation in the UK business landscape to enhance competitiveness on the global stage. With the removal of the diversity policy, Goldman Sachs’s position reflects a broader trend seen among various firms adjusting their diversity hiring practices post-2020.