Goldman Sachs Board DEI Removal Plan
Goldman Sachs plans to remove DEI hiring standards for its board of directors, as reported by The Wall Street Journal on Monday. The company previously eliminated a board diversity requirement for companies it took public last year. Now, it will scrub DEI language from criteria for its own board members this month.
The board's governing committee evaluates candidates based on four criteria, one of which defines diversity in traditional terms encompassing viewpoints, background, work, and military service. This section also references demographics such as race, gender identity, ethnicity, and sexual orientation, which the board now plans to excise.
Influence from National Legal and Policy Center
The anticipated change stems from a September request by the National Legal and Policy Center, a conservative nonprofit holding a small stake in the bank. Goldman Sachs reached a deal with the group, agreeing to implement the modification independently. In return, the NLPC withdrew a formal shareholder proposal ahead of the company's annual meeting.
Broader Context of DEI Policy Rejection
This development reflects a wider corporate retreat from DEI initiatives, accelerated by President Donald Trump's return to the White House. On his first day, Trump signed an executive order titled 'Ending Radical and Wasteful Government DEI Programs and Preferencing,' directing federal agencies to eliminate DEI-style programs. The next day, a second order promoted merit-based opportunities, including reforms to federal contracting.
We’ve ended the tyranny of so-called Diversity, Equity and Inclusion policies all across the entire federal government and indeed the private sector and our military. And our country will be woke no longer.
Administration Actions Against DEI in Education
The Trump administration has also targeted DEI at elite universities, negotiating new funding agreements with institutions like Columbia University and Harvard. Harvard faced frozen federal research funding over antisemitism and woke ideology concerns. In April, Harvard sued the administration, claiming unconstitutional pressure on academic institutions. Lawyers for the administration appealed a judge's order in December to restore $2.7 billion in funding.
