At the World Economic Forum in 2020, Goldman Sachs’ chief executive David Solomon announced that the firm would refuse to take any company public in the US and Europe that did not have at least one diverse board member. It is just one example of how the firm has been at the forefront of the industry in devising innovative solutions to improve representation of minorities and women both internally and across its client base.
The move was widely dismissed as a gimmick by rival banks, none of which has followed suit. Yet is has already produced impressive results. In the year to July, Goldman Sachs placed more than two dozen diverse candidates on the boards of its clients, 40% of whom were women of colour.
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As this suggests, the success of the initiative has been predicated not only on Goldman’s leading IPO franchise but also its ability and willingness to help companies source diverse board members.
Ilana