Goldman’s board kills DEI — and that’s not a terrible thing

Core Perspective - The recent updates to governance policies by Goldman Sachs and other major banks indicate a shift away from formal DEI criteria in director selection, prompting a discussion on the necessity of diverse perspectives in boardrooms [1] Group 1: Diversity Initiatives - The foundation of diversity initiatives stems from mid-20th century civil rights legislation aimed at broadening talent access and incorporating diverse perspectives into decision-making [2] - The core objective of enhancing board diversity remains valid, but current practices may not adequately reflect the necessary range of perspectives for understanding future market trends [3] Group 2: Board Composition Challenges - Many corporate boards are predominantly composed of former executives and financial professionals, lacking representation from frontline and blue-collar workers who constitute about 70% of the American workforce [5] - The average age of public company directors is between 61 and 63, with only 0.3% of board seats held by directors under 40 in 2023, indicating a significant generational imbalance [6]