Goldman Sachs to Remove Diversity from Board Candidate Criteria: WSJ

• Goldman's board governance committee will remove references to demographic factors including race, gender identity, ethnicity, and sexual orientation while retaining broader diversity criteria like viewpoints and professional experience
• The bank previously eliminated its 'diversity and inclusion' section from annual filings and ended its 2020 policy requiring companies to have at least two diverse board members before receiving IPO advisory services
• The change follows pressure from President Trump's administration and a request from the National Legal and Policy Center, a conservative activist nonprofit organization

Goldman Sachs Eliminates Diversity Criteria from Board Candidate Assessment

Goldman Sachs is removing race, gender identity, sexual orientation, and other diversity-related factors from its board's criteria for evaluating prospective candidates, according to a Wall Street Journal report citing sources familiar with the matter.

Key Developments:

The decision follows mounting pressure from President Donald Trump's administration, which has aggressively targeted diversity, equity, and inclusion (DEI) programs across government and private sectors since taking office last year, claiming such initiatives are discriminatory. The move was prompted by a request from the National Legal and Policy Center, a conservative activist nonprofit organization.

Industry Context:

Goldman Sachs joins other major financial institutions retreating from DEI commitments, including Morgan Stanley and Citi, which have already softened their diversity policies under Trump administration pressure.

Previous Actions:

In 2024, Goldman removed an entire "diversity and inclusion" section from its annual filing and eliminated its requirement that companies have at least two diverse board members before receiving IPO advisory services.

Technical Changes:

The bank's governance committee currently uses four primary criteria to identify candidates, including a broad diversity definition encompassing viewpoints, background, professional and military experience, plus demographic considerations. The committee will now remove specific references to demographic factors including race, gender identity, ethnicity, and sexual orientation.

Market Implications:

This retreat from diversity commitments by major Wall Street institutions signals a broader corporate shift away from DEI practices, potentially reshaping hiring and governance standards across the financial sector. Goldman Sachs declined to comment on the report, which Reuters could not independently verify.