Goldman Sachs has scrapped an internal diversity policy that previously required companies to have diverse board members before the bank would assist with their stock market listings.
The policy, introduced to encourage greater boardroom diversity, had mandated that firms seeking Goldman’s advisory services include at least two diverse board members, one of whom had to be a woman.
But Richard Gnodde told the BBC: "That policy was put in place to try and drive a change in behaviour and I think that's happened."
During a broader discussion, Gnodde also urged the UK government to accelerate infrastructure projects and cautioned that uncertainty over U.S. policies was holding back business confidence and economic momentum.
Goldman Sachs first implemented the board diversity rule in 2020, initially requiring at least one diverse director before expanding the requirement to two. The bank now believes that its efforts have influenced corporate governance enough to step back from enforcing the rule.
Mr Gnodde said: "I think what is important is that you have a diversity of views on that board and if you look at these companies they've all embraced diversity, it's moved along.
"I think it has served its purpose."
According to think tank The Conference Board, although US boards are "more diverse than ever", there was a "marked slowdown" in racial diversity hiring on boards between 2022 and 2024.
The policy, introduced to encourage greater boardroom diversity, had mandated that firms seeking Goldman’s advisory services include at least two diverse board members, one of whom had to be a woman.
But Richard Gnodde told the BBC: "That policy was put in place to try and drive a change in behaviour and I think that's happened."
During a broader discussion, Gnodde also urged the UK government to accelerate infrastructure projects and cautioned that uncertainty over U.S. policies was holding back business confidence and economic momentum.
Goldman Sachs first implemented the board diversity rule in 2020, initially requiring at least one diverse director before expanding the requirement to two. The bank now believes that its efforts have influenced corporate governance enough to step back from enforcing the rule.
Mr Gnodde said: "I think what is important is that you have a diversity of views on that board and if you look at these companies they've all embraced diversity, it's moved along.
"I think it has served its purpose."
According to think tank The Conference Board, although US boards are "more diverse than ever", there was a "marked slowdown" in racial diversity hiring on boards between 2022 and 2024.
Goldman Sachs axes diversity rule that has 'served its purpose'
The bank ditches a policy that stopped it acting on flotations for firms with an all male, all white board.
www.bbc.co.uk
