Goldman Sachs Retires Controversial Diversity Policy Amid Evolving Corporate Landscape

In a recent interview, Goldman Sachs International's CEO Richard Gnodde announced the termination of the bank's internal diversity mandate which required businesses seeking to go public to have at least two diverse board members, including one woman. Gnodde stated the policy had been implemented in 2020 as part of an effort to accelerate diversity in corporate governance, but now believes it has achieved its goal. He noted that many companies have embraced diversity organically over time. The decision follows a US federal appeals court ruling that limited the ability of exchanges like Nasdaq to require board diversity, presenting a shifting corporate landscape regarding diversity requirements.

Gnodde emphasized the importance of diverse viewpoints on boards while addressing other pressing economic matters, arguing that uncertainty around US trade policy is dampening corporate investment. He urged the UK government to expedite infrastructure projects to stimulate economic growth and increase global competitiveness. Gnodde’s remarks suggest a broader trend in corporate governance, reflecting the evolving perceptions of diversity in business and the need for sustained focus on competitiveness in a challenging economic environment.