Wed, 12 Feb 2025

Wed, 12 Feb 2025 Goldman axes diversity rule that has 'served purpose'

The bank ditches a policy that stopped it acting on flotations for firms with an all male, all white board.

* Goldman Sachs' international boss, Richard Gnodde, has said that the bank no longer enforces a diversity policy requiring companies to have two diverse board members.
* The policy was introduced in 2020 but has been scrapped due to changing circumstances and "legal developments".
* The US government's stance on diversity is seen as a factor in Goldman Sachs' decision, with some companies such as Google and Meta rowing back on their own diversity initiatives.
* Gnodde said that firms are uncertain about the impact of Trump's policies on trade tariffs, which is dampening investment "animal spirits".
* He also urged the UK government to accelerate infrastructure projects, citing the need for growth in the economy.
* Goldman Sachs recommends that the UK government should start small-scale infrastructure projects rather than long-range ones.
* Gnodde suggested that UK businesses need to consolidate and compete globally by reducing the number of players in key industries such as telecoms and banking.
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