Goldman Sachs to drop DEI from board candidate criteria: Report

Goldman Sachs (GS) is preparing to remove diversity-related factors such as race, gender identity and sexual orientation from the criteria its board uses to evaluate prospective directors, according to a report by The Wall Street Journal, citing people familiar with the matter.

The move would eliminate references to “other demographics” in the board’s governance framework, marking the latest step by the investment bank to scale back explicit diversity language. 

The committee would continue to assess candidates using broader measures of diversity, including viewpoints, professional background and military experience, the report said.

The expected change follows a request from conservative shareholder group National Legal and Policy Center, which had urged the firm last September to remove the DEI-related wording. 

According to the report, Goldman reached an understanding with the group under which the bank would implement the change voluntarily, avoiding a formal shareholder proposal ahead of its annual meeting.

The development comes amid a broader pushback against diversity, equity and inclusion (DEI) initiatives in the United States under Donald Trump, whose administration has argued such programs can be discriminatory. 

Since returning to the White House, Trump has signed executive orders aimed at dismantling DEI programmes across federal agencies and influencing private-sector practices.

Goldman has already taken steps in this direction. Last year, the bank dropped a four-year-old policy that required companies seeking its support for initial public offerings to have at least two diverse board members. 

It also removed a standalone diversity and inclusion section from its annual filing. In an interview, Vice Chair Richard Gnodde said the policy had fulfilled its purpose and was no longer necessary. 

Goldman originally introduced the requirement to accelerate diversity adoption across corporate boards but now believes many companies are embedding diversity more organically. The move signals a notable shift from Goldman’s earlier assertive stance on corporate governance reforms.

Other major financial institutions, including Morgan Stanley and Citigroup, have similarly softened some diversity commitments amid the shifting political and regulatory landscape.