Simon Jack and Dearbail Jordan reported on Goldman Sachs International’s chief executive Richard Gnodde discussing the bank’s decision to abandon an internal diversity policy that required diverse representation on all-male, all-white boards seeking financial advice for company flotations. Gnodde explained that the policy was initially implemented to prompt behavioral changes and promote diversity but was now considered unnecessary. The investment bank had initially stipulated that companies looking to go public needed to have at least one diverse board member, which was later increased to two, including a female member.
The discussion with Gnodde also touched on various topics, such as the need for the UK government to take swift action on infrastructure projects and the impact of uncertainty surrounding US policies on business sentiments. The interview highlighted the importance of diverse views on corporate boards and how companies have progressed in embracing diversity, despite challenges in maintaining momentum. Despite progress in board diversity in the US, there has been a notable slowdown in racial diversity hiring on boards between 2022 and 2024, according to The Conference Board’s findings.
Following legal developments, including a US federal appeals court ruling on board diversity requirements by Nasdaq, Goldman Sachs announced the discontinuation of its formal diversity policy. This decision was also influenced by changes in government directives, such as US President Donald Trump’s executive order targeting government diversity programs. Gnodde emphasized Goldman Sachs’ commitment to advancing diversity efforts and avoiding setbacks in light of shifting political landscapes.
Gnodde also expressed concerns over the impact of trade tariffs and policies under the Trump administration on companies’ investment decisions and confidence levels. The discussion highlighted the need for clarity in policy outcomes to alleviate uncertainties affecting businesses. Additionally, Gnodde urged the UK government to expedite infrastructure projects to bolster economic growth, highlighting the importance of engaging the private sector through competitive bidding processes. The report also underscored the significance of competition and consolidation in the business sector to enhance the UK’s global competitiveness and stimulate growth
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