Jamie Spencer
Goldman Sachs has scrapped its four-year-old policy requiring companies to have two diverse board members before going public, citing recent legal challenges and growing scrutiny from President Donald Trump’s administration.
“As a result of legal developments related to board diversity requirements, we ended our formal board diversity policy,” Goldman Sachs spokesperson Tony Fratto said on Tuesday.
Fratto added that while the firm still believes in diverse boardrooms, it will now only encourage companies to adopt this approach rather than mandate it.
Trump’s, DEI Policies, and, Corporate America
Since taking office on January 20, Trump has launched executive orders targeting Diversity, Equity, and Inclusion (DEI) programs in both the public and private sectors. This has led to major corporations reassessing their workplace diversity policies.
The rollback by Goldman Sachs follows a December court ruling that struck down Nasdaq’s diversity requirement, which had mandated at least one woman, racial minority, or LGBTQ person on company boards or an explanation for the absence.
Goldman Sachs, Board Diversity, Policy Timeline
- 2020: Goldman initially required at least one diverse board member for IPO candidates in the U.S. and Western Europe.
- 2021: The firm expanded the requirement to two diverse members, one of whom had to be a woman.
- 2024: Policy formally ended due to legal and political pressure.
Corporate Diversity, Losing Momentum?
The push for boardroom diversity had already been slowing before Trump took office. A Reuters review found that while large corporations made marginal progress in increasing women in management, enthusiasm for DEI initiatives waned due to conservative backlash.
Goldman’s decision reflects broader changes in Wall Street’s approach to diversity in response to shifting political and legal landscapes.
