In a recent interview, the CEO of Goldman Sachs International, Richard Gnodde, revealed that the bank has abandoned its internal diversity requirement for corporate boards during flotation processes, arguing that the initial purpose has been fulfilled.
Goldman Sachs Reassesses Diversity Policy in Light of Business Evolution
Goldman Sachs Reassesses Diversity Policy in Light of Business Evolution
Goldman Sachs' international CEO announces the end of a diversity policy, citing achieved progress in board representation.
Goldman Sachs, the global investment banking giant, has made headlines with its recent decision to eliminate a mandate requiring companies to feature diverse members on their boards to proceed with public share offerings. This policy, initially introduced in 2020 as a progressive measure to enhance diversity, required the the firms engaging in flotations to include at least two diverse board members, including one woman. Gnodde commented on the policy's termination, stating, “That policy was put in place to try and drive a change in behaviour and I think that's happened,” reflecting confidence in a significant cultural shift within the business landscape.
The decision comes amid evolving corporate norms towards diversity, following a U.S. court ruling against Nasdaq's attempts to enforce similar diversity mandates. A spokesperson for Goldman Sachs confirmed that changing legal frameworks motivated the cessation of its formal diversity policy. However, Gnodde emphasized that while the policy may be over, the bank's commitment to promoting a diverse boardroom remains. "Our ambitions are to continue to take things forward and frankly to go much further than we have been," he asserted.
In the broader economic landscape, Gnodde pointed to ongoing uncertainties stemming from U.S. trade policies as hindering investment enthusiasm, describing the current corporate mood as “tempered.” He urged the UK government to accelerate infrastructure projects to bolster economic growth, highlighting the need for immediate action rather than prolonged waiting periods for future plans.
Calling on the government to issue tenders for infrastructure developments promptly, Gnodde believes that leveraging the private sector can inject competition and drive innovation, vital for lifting the UK’s economic competitiveness on a global scale. As he navigates through these changes, Gnodde remains optimistic that the shift from mandated to voluntarily embraced diversity could further propel industry standards in the future.
The decision comes amid evolving corporate norms towards diversity, following a U.S. court ruling against Nasdaq's attempts to enforce similar diversity mandates. A spokesperson for Goldman Sachs confirmed that changing legal frameworks motivated the cessation of its formal diversity policy. However, Gnodde emphasized that while the policy may be over, the bank's commitment to promoting a diverse boardroom remains. "Our ambitions are to continue to take things forward and frankly to go much further than we have been," he asserted.
In the broader economic landscape, Gnodde pointed to ongoing uncertainties stemming from U.S. trade policies as hindering investment enthusiasm, describing the current corporate mood as “tempered.” He urged the UK government to accelerate infrastructure projects to bolster economic growth, highlighting the need for immediate action rather than prolonged waiting periods for future plans.
Calling on the government to issue tenders for infrastructure developments promptly, Gnodde believes that leveraging the private sector can inject competition and drive innovation, vital for lifting the UK’s economic competitiveness on a global scale. As he navigates through these changes, Gnodde remains optimistic that the shift from mandated to voluntarily embraced diversity could further propel industry standards in the future.
