Feb 24 (Reuters) - Colgate-Palmolive told the National Legal and Policy Center that it intends to ask investors to vote ‌against the conservative shareholder group's proposal to remove DEI-related criteria ‌in the company's selection process for its board members, according to a letter ​viewed by Reuters. The NLPC's proposal comes as several companies including Goldman Sachs, Walmart, Target and Meta dropped or considered altering their diversity, equity and inclusion (DEI) policies as U.S. President Do ...

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].

Core Insights - The share of Fortune 500 companies publicly outlining their diversity, equity, and inclusion (DEI) commitments has decreased by nearly two-thirds from the previous year, indicating a significant decline in corporate engagement with DEI policies [1][2]. Group 1: Participation in DEI Initiatives - Only 131 Fortune 500 companies participated in the Corporate Equality Index (CEI) this year, a drop from 377 in 2025, with many non-participating companies being federal contractors [2]. - The decline in participation suggests that corporate leaders are recognizing the risks associated with DEI controversies, which can negatively impact share prices [5]. Group 2: Political and Regulatory Context - The Human Rights Campaign (HRC) president noted that unprecedented pressure from the federal government has led some companies to withdraw from DEI initiatives, citing executive orders and threats of investigations [9]. - An executive order signed by former President Donald Trump aimed to end illegal DEI discrimination and encouraged private sector companies to eliminate illicit DEI policies [8]. Group 3: Public Sentiment and Corporate Response - Activists argue that the decline in DEI participation reflects a disconnect between corporate policies and the views of average Americans, suggesting that such policies may not be popular [5][6]. - Companies that maintain transparency and clear communication regarding their DEI policies tend to earn trust and retain talent, with shareholders largely rejecting anti-DEI measures [13].

Core Viewpoint - The Equal Employment Opportunity Commission (EEOC) is investigating Nike for alleged discrimination against white employees through its diversity policies, marking a significant escalation in scrutiny of corporate diversity initiatives [1][2]. Investigation Details - The EEOC is seeking information on Nike's criteria for employee layoffs, how it tracks race and ethnicity data, and details about programs that may provide race-restricted mentoring and career development opportunities [2]. - Nike has stated that it has cooperated with the EEOC by providing thousands of pages of information and considers the subpoena an unusual escalation [2]. Context of the Investigation - Nike is the most prominent company currently under a formal anti-diversity, equity, and inclusion (DEI) investigation by the EEOC, following a similar subpoena issued to Northwestern Mutual [3]. - EEOC Chair Andrea Lucas has emphasized that the agency will take necessary actions, including subpoenas, when there are indications that DEI programs may violate federal discrimination laws [4]. Background of the Complaint - The investigation against Nike was initiated by a commissioner's charge filed by Lucas, rather than stemming from a worker complaint, and was influenced by a letter from America First Legal, a conservative legal group [6]. - This investigation follows Lucas's public call for white men to report experiences of race or sex discrimination, indicating a shift in the agency's focus [5].

Core Viewpoint - Nike is under federal investigation for alleged discrimination against white employees linked to its diversity, equity, and inclusion (DEI) targets [1][2] Group 1: Investigation Details - The Equal Employment Opportunity Commission (EEOC) has requested a federal judge to compel Nike to provide information regarding allegations of racial discrimination, with some requests dating back to 2018 [1] - The investigation was initiated by EEOC Chair Andrea Lucas, who claims Nike violated Title VII of the Civil Rights Act of 1964 through discriminatory employment practices based on race [2][5] - The EEOC is seeking information on Nike's criteria for layoffs, tracking of employee race and ethnicity data, and details on 16 programs that allegedly provide opportunities based on race [3] Group 2: Nike's DEI Initiatives - In 2021, Nike launched a five-year plan aimed at enhancing diversity and inclusion, which included linking executive pay to progress in DEI efforts [4] - One of the goals of this plan is to achieve 35% representation of racial and ethnic minorities in its U.S. workforce by 2025, with a workforce of 76,600 employees as of May 2025 [4] Group 3: Political Context - The investigation aligns with broader efforts by the Trump administration to curtail DEI programs in the workforce, including an executive order signed by Trump to limit DEI initiatives in the federal government [5]

Core Viewpoint - The U.S. Equal Employment Opportunity Commission (EEOC) is seeking to enforce a subpoena against Nike as part of an investigation into alleged discrimination against White employees and applicants [1][2]. Group 1: Investigation Details - The EEOC issued the subpoena in September 2023 following three requests for information from Nike related to a 2024 commissioner's charge [2]. - The investigation is based on allegations that Nike may have engaged in discriminatory practices against White employees in hiring, promotion, and other employment decisions, potentially violating Title VII of the 1964 Civil Rights Act [4]. Group 2: Nike's Response - Nike has reportedly failed to fully provide the requested information, which includes internal documentation and job descriptions, according to an EEOC official [5]. - In response to the subpoena, Nike's legal representatives described the EEOC's requests as "broad, ambiguous, and unduly burdensome," while agreeing to provide information on a rolling basis [6]. - A Nike spokesperson stated that the company is willing to engage with the EEOC and has already shared thousands of pages of information in good faith [8].

Core Insights - U.S. investors are increasingly focusing on ESG policies that enhance sustainable business practices and shareholder value, leading companies to refine executive incentive plans with quality metrics centered on human capital [1][6] Group 1: ESG Metrics in Executive Incentive Plans - 76% of S&P 500 companies reported incorporating at least one ESG metric in their executive incentive plans, marking a 1% decline from the previous year [2] - Globally, 80% of companies included at least one ESG metric in their executive incentive plans, with 75% using ESG measures in short-term incentive plans and 32% in long-term incentive plans [3] Group 2: Diversity, Equity, and Inclusion (DEI) Metrics - The prevalence of DEI metrics in the U.S. has significantly decreased due to recent Court rulings and policy changes, with only 34% of S&P 500 companies using these metrics in executive incentives, down from 55% the previous year [4] - 23 companies (5%) of the S&P 500 disclosed plans to remove DEI metrics from their executive incentive plans for the current year, indicating a continuing trend away from these metrics [4] Group 3: Human Capital Metrics - Human capital metrics remain a priority, with 71% of North American companies and 81% of European companies including at least one people-related metric in their executive incentive plans [5] - Common people-related metrics include employee engagement, succession planning, culture, and employee retention, reflecting a focus on governance of people risks and opportunities [6] Group 4: Study Overview - The WTW 2025 ESG Incentive Metrics Study analyzed 1,070 public company disclosures across major stock exchange indices in 18 markets, covering fiscal years ending between May 2024 and May 2025 [7]

Core Insights - Ashley's consulting firm is facing significant financial challenges due to President Trump's policies, which have led to over $230,000 in debt [1][2]. Group 1: Business Overview - Ashley's consulting firm connects various organizations with charities to repurpose furniture and fixed assets, generating $2.5 million in gross revenue last year [2]. - The firm has been adversely affected by Trump's tariffs and cuts to Diversity, Equity, and Inclusion (DEI) initiatives, as well as funding reductions for universities and public schools [2]. Group 2: Financial Challenges - The sources of Ashley's $230,000 debt include $90,000 in leases for two business vans, $80,000 in credit card debt, and $60,000 owed to a vendor, along with ongoing commitments for office lease and insurance [4]. - The financial strain intensified after Ashley had to lay off all employees, leading to significant payouts for medical expenses, insurance, and vacation time, which depleted available funds [4]. Group 3: Future Outlook - Ashley has secured some contracts for the upcoming spring but is uncertain about her ability to sustain the business until then [3]. - Suggestions were made for Ashley and her husband to consider full-time employment to alleviate financial pressure while waiting for contract fulfillment [5].

Group 1 - The Trump administration is intensifying its scrutiny of diversity, equity, and inclusion (DEI) initiatives in hiring and promotion at companies like Google and Verizon, launching investigations under the False Claims Act [1][4] - The investigations are part of a broader initiative by the Department of Justice (DOJ) to use the False Claims Act as a civil rights enforcement tool, expanding its traditional focus on financial fraud [3][10] - Companies that certify compliance with federal anti-discrimination laws while maintaining DEI programs deemed discriminatory could face accusations of submitting "false claims" for government payment [3][10] Group 2 - Google and Verizon have received demands from the DOJ for documents related to their workplace diversity programs, with other companies across various industries also potentially under investigation [4][16] - The DOJ's approach, known as implied certification, argues that compliance with civil rights laws is essential for receiving federal funds, targeting companies with federal contracts that continue DEI policies [10][11] - Legal experts suggest that the DOJ's strategy may face challenges in court, as proving material misrepresentation in securing federal contracts could be difficult [13]

Core Insights - The progress of women in leadership roles, particularly in corporate boards and CEO positions, has plateaued, indicating a potential regression in gender diversity efforts [2][3][16] Board Representation - Women's representation on boards in the Russell 3000 and S&P 500 has reached record highs of 30.3% and 34.3% respectively, but the year-over-year increase of 0.1 percentage points in the Russell 3000 is the smallest in over a decade [2] - In the third quarter, women accounted for only 22.5% of new board appointments in the Russell 3000, marking the lowest rate in over ten years [2] - The Conference Board reported a slowdown in board turnover and new director elections, with women gaining only 47 board seats in 2025 compared to 258 in 2024 and 342 in 2023 [5] CEO Positions - The number of female CEOs in the Fortune 500 has plateaued at 54, one less than the previous year, highlighting a concerning trend in corporate leadership [3][7] - Women comprised 25.5% of new CEOs in U.S. firms through October, a decrease from 26.4% the previous year and the lowest rate since 2020 [6] - The share of women in profit and loss (P&L) roles has increased from 20% in 2022 to 24% in 2023, yet women remain underrepresented in CEO feeder positions [11] Leadership Development - Many companies have dismantled formal leadership development programs, which previously helped cultivate female leaders, due to cost concerns and changing workforce dynamics [9][10] - A significant number of employers have reduced or eliminated flexible work arrangements, which may negatively impact women's career advancement [12] Employment Trends - The employment rate for working-age women has decreased to 54.8% from 55.2% earlier in the year, with unemployment among women rising to 4.5% [13] - The rate of outgoing women CEOs has increased to 23% through October, compared to 21% during the same period last year [14] Future Outlook - The long-term outlook for women's representation in corporate leadership remains bleak, as studies indicate women are less likely to aspire to promotions compared to men [16] - There is a call for companies to recommit to developing women and other underrepresented groups as leaders, emphasizing the untapped potential within these demographics [17]