Goldman Sachs Abandons IPO Diversity Pledge With US DEI Goals Under Fire
SUMMARY
Goldman Sachs Group Inc. is abandoning its 2020 pledge to refuse initial public offering (IPO) business with companies that have all-White, male boards. The investment bank had initially required at least two diverse board members, one of whom must be a woman, for IPOs in the US or Western Europe. However, due to legal developments surrounding board diversity requirements, the bank has decided to end its formal diversity policy. Goldman spokesperson Tony Fratto stated, “As a result of legal developments related to board diversity requirements, we ended our formal board diversity policy. We continue to believe that successful boards benefit from diverse backgrounds and perspectives, and we will encourage them to take this approach.” Goldman had previously used its influence to push companies toward diversity, even brushing off client complaints. It has recently advised on IPOs, such as Titan America SA, which does not meet the diversity criteria.
