Goldman Sachs has ended its formal board diversity policy, citing a December court ruling over a similar initiative at the Nasdaq stock exchange. The move follows rollbacks of other DEI initiatives by large US corporations.
The policy change was prompted by a legal ruling that struck down Nasdaq’s efforts to get companies to diversify their boards. Goldman Sachs had adopted its board diversity initiative in 2020, requiring IPO clients to have at least two diverse board members. However, the company decided to drop this requirement due to concerns over the application of the Nasdaq ruling.
Tulane law professor Ann Lipton questioned whether the Nasdaq ruling applies to companies like Goldman Sachs. The appeals court ruled that the SEC’s authority did not extend to requiring corporate boards’ diversity.
Despite dropping its formal policy, Goldman will continue to offer board placement services and encourage its clients to adopt diverse boards.
Source: https://www.businessinsider.com/goldman-sachs-dei-requirement-diversity-boards-ipos-2025-2