Goldman Sachs axes diversity rule that has ‘served its purpose’ | Global News Avenue

Goldman Sachs’ vice chairman said the bank abandoned the internal diversity rules, forbidding the rule to recommend all men, all white boards in terms of corporate flotation because no longer needed.

Investment banks promise that there are only two different board members, one of which must be a woman, and that it will only help businesses sell their shares on stock exchanges.

But Richard Gnodde told the BBC: “The policy was put in place to try to drive behavior change, and I think that happened.”

He also said in an extensive interview that the UK government now needs to continue its infrastructure projects and warned that uncertainty about U.S. policy is undermining the company’s “animal spirit.”

Goldman Sachs introduced its diversity policy on the board in 2020, initially requiring companies that want to float must have a diverse membership before adding it to two.

Mr Gnodde said: “I think it’s important that you have a variety of perspectives on this board and if you look at these companies that embrace diversity, then it will grow.

“I think it has achieved its purpose.”

Although U.S. boards are “more diverse than ever,” between 2022 and 2024, according to the think tank, there is a “significant slowdown” in hiring racial diversity on boards.

Among the 500 largest U.S. companies, non-white directors have a share of 26% and female directors have a share of 34% in 2024, according to think tanks.

Last December, the U.S. Federal Court of Appeal ruled that the Nasdaq Stock Market Index had no authority to impose rules requiring companies to hire women and minorities or LGBTQ+ people on their boards, or explain why they didn’t.

“We have ended a formal board diversity policy due to legal developments related to board diversity requirements,” a Goldman Sachs spokesman said.

The company did not specify whether it refers to the Nasdaq case.

In its first operations after being sworn in, U.S. President Donald Trump signed an executive order to end the “radical and wasteful government DEI (diversity, equity and inclusion) program.”

Since then, many companies have re-examined companies that own Instagram and Facebook, including Google and Meta, including Google and Meta.

Asked if he was backing off due to Trump’s White House’s diversity policy, Mr. Gnord said: “I can only speak for myself, and I don’t think that’s the case.

“Our ambition is to continue to push things forward, frankly, to go further than we used to.”

However, he acknowledged that the uncertainty created by Trump’s trade tariff policy has led to the “animal spirit” of the company and its interest in investment.

“I think I’m feeling a little irritable now because people are not sure what the policy outcome will be and what impact it will be,” Mr Gnodde said.

Trump initially said he would impose a 25% tariff on Canada, Mexico and China. However, he subsequently suspended Canada and Mexico for 30 days.

Since then, the president has announced that he will impose a 25% tariff on all steel and aluminum entering the United States, Causing angry responses from Canada and the EU and others.

Looking at the UK, Mr. Gnodde urged the government to start infrastructure projects as soon as possible.

Prime Minister Rachel Reeves Recently announced her support for the third runway at Heathrow Airport In addition to expanding Luton and Gatwick airports, a “growth corridor” was built between Oxford and Cambridge.

However, these projects are expected to be completed within years.

The government has made economic development a key policy, but growth in the UK has slowed, According to official characters.

“Remote projects are very interesting. We need to put them in place, but they take a long time,” Mr Gnodde said.

He added: “Let’s find some infrastructure building that we need to do, whether in the energy sector, whether in transportation, improving road networks, in terms of energy transition.

“These plans are all sitting on the Treasury table. Why don’t we put them on the tender and let the private sector bid on conditions that are attractive to the private sector, and you’ll see the competition.”

Goldman Sachs in a report on promoting small businesses in the UK, said: “If we learn two things from the first six months of the new UK government, it is that growth is an urgent national task and unlocking this Perhaps the biggest challenge facing continuous governments.”

Mr Gnodde said Labour had “communicated a strong message on the game” after the match Recently removed from the Chair of the Bureau of Competition and Markets.

He added that the government pulling such leverage could inspire growth to make the UK “global competitiveness”.

He also suggested that UK businesses must merge to compete globally.

“How many players do we need?” he said. “How many telecom companies do we need? How many banks do we need? I think if we are going to compete on the global stage, the market should be able to drive that.”