Goldman Sachs scraps diversity rules

Core Viewpoint - Goldman Sachs is planning to eliminate diversity rules for its board of directors, reflecting a broader retreat from diversity, equity, and inclusion (DEI) initiatives in corporate America [1][4]. Group 1: Changes in Diversity Policies - The bank will remove requirements related to race, gender identity, and sexual orientation from its director selection guidelines later this year [1]. - Goldman Sachs previously dropped a rule that prohibited taking companies public without diverse boards, stating that the policy had "served its purpose" [2][5]. - The bank has adjusted its diversity campaign "One Million Black Women," a $10 billion program, by removing references to race from its homepage [6]. Group 2: Board Composition and Shareholder Sentiment - Currently, five out of the bank's 14 board members are women, while 12 members are white [2]. - Only 2% of Goldman Sachs shareholders supported a motion for an audit of its race-based initiatives at the last annual meeting [5]. - The changes in policy follow pressure from the conservative National Legal and Policy Center (NLPC), which has advocated for a shareholder vote on dropping DEI initiatives [4]. Group 3: Leadership Statements and External Influences - David Solomon, the CEO, previously emphasized that DEI was a "top priority" for Goldman Sachs [7]. - The Trump administration's influence has contributed to the pressure on companies, including Goldman Sachs, to reduce DEI initiatives [6].