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Goldman Sachs is preparing to eliminate diversity factors from the criteria its board uses to identify potential directors, according to reports.
The Wall Street bank plans to remove references to race, gender identity, sexual orientation, and ethnicity from its governance committee guidelines. The committee currently evaluates qualified candidates based primarily on four factors, including a broad description of diversity covering viewpoints, background, work, and military service, along with “other demographics” that list DEI considerations.
Under the proposed revision, the “other demographics” category will be removed, the people said.
Right-wing pressure drives board review
The change follows a private request from the National Legal and Policy Center, a far-right pressure group that holds a small stake in the bank. The group submitted a proposal in September seeking to eliminate DEI-related criteria from the board selection process and asked that it be included in Goldman’s proxy statement ahead of the annual shareholder meeting this spring.
Goldman subsequently informed the organization that it intended to revise its criteria. An agreement was signed in which the National Legal and Policy Center agreed to withdraw its proposal. The bank’s board is expected to approve the updated language this month, the people said.
The non-profit has argued to several companies that considering diversity characteristics when identifying qualified board candidates increases the risk of discrimination.
Wider DEI pullback across banking
Goldman’s move reflects a broader reassessment of DEI initiatives across large financial institutions. Over the past year, the firm has scaled back elements of its diversity efforts.
The bank reworked its One Million Black Women program, a multibillion-dollar initiative aimed at investing in Black businesswomen and non-profit leaders, removing references to race from the program’s language. It also ended its requirement that companies in the US and Western Europe maintain diverse boards as a condition for going public through the bank.
Goldman previously faced anti-DEI proposals during last year’s proxy season, though shareholders did not approve those measures.
The policy change comes amid a significantly altered regulatory and political climate. Early last year, Donald Trump signed an executive order directing federal departments and agencies to initiate civil investigations into corporate DEI programs - a pivotal moment for banks and other major employers evaluating their diversity strategies and associated legal risks.
