Goldman Sachs Inc. (NYSE:GS) is reportedly planning to remove diversity criteria from the selection process for its board members.
Activist Pressure Drives Goldman’s Board Overhaul
The Wall Street Journal, citing sources, reported that Goldman Sachs is set to eliminate factors such as race, gender identity, sexual orientation, and other diversity considerations from its board’s selection criteria. The decision is expected to be approved by the board this month.
This follows a request from the Virginia-based conservative activist nonprofit, the National Legal and Policy Center (NLPC). The minor shareholder in Goldman Sachs submitted a proposal last September to remove the diversity, equity, and inclusion (DEI) criteria.
According to the report, Goldman then informed NLPC that it planned to remove the DEI criteria, and both parties signed a formal agreement that included NLPC withdrawing its proposal.
The board’s governance committee is expected to approve the revised language this month, as per the report.
The global investment bank also updated its One Million Black Women diversity program, which was launched in 2021 to address opportunity gaps for Black women across industries. The revisions remove references to race and eliminate the requirement that companies in the U.S. and Western Europe have diverse boards to go public with the bank.
Trump’s DEI Crackdown Reshapes Corporate America
White House Press Secretary Karoline Leavitt acknowledged the move on X, framing it as part of President Donald Trump‘s broader push against the anti-woke campaign across corporate America.
The shift reflects mounting corporate pressure since Trump’s early 2025 executive order directing federal agencies to investigate corporate DEI programs, a turning point that accelerated Wall Street’s retreat from diversity commitments.
In 2025, a U.S. appeals court allowed the Trump administration to temporarily enforce a ban on DEI programs within federal agencies and businesses holding government contracts.
This ruling has had a significant impact on companies’ DEI strategies, with firms like Coca-Cola (NYSE:KO) warning that a shortage of diverse talent could harm their business.
California Pushes Back With Mandatory VC Disclosure
While GS retreats, California is moving in the opposite direction.
Starting March 1, venture capital firms operating in the state must submit annual demographic reports to the Department of Financial Protection and Innovation under the state’s “Fair Investment Practices by Venture Capital Companies” law. Firms that fail to comply could face penalties of up to $5,000 per day.
Photo courtesy: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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