Goldman Sachs is preparing to eliminate race, gender identity, and sexual orientation from the criteria used to select members of its board of directors, marking a significant shift in governance policy that reflects a broader rollback of diversity initiatives within major United States corporations.
The move, first reported by The Wall Street Journal, follows a request submitted last September by the shareholder advocacy group National Legal and Policy Center, which holds a minority stake in the bank. The organization urged Goldman Sachs to abandon diversity, equity, and inclusion considerations in board recruitment and to disclose the change to shareholders through its proxy statement, a document distributed annually ahead of investor meetings.
Goldman’s board is understood to have approved the revision, informing the group that future director selections will focus on professional experience and other traditional qualifications rather than demographic characteristics. The bank currently evaluates candidates using four broad factors, one of which has historically encompassed diversity-related considerations. That category is expected to be removed, while elements such as viewpoints, background, and professional or military service will remain.
The decision represents the latest step in a gradual retreat from diversity pledges once championed by the bank. Although an overwhelming majority of shareholders previously rejected a proposal that would have required a review of Goldman’s diversity programmes, the institution has already scaled back several initiatives, including an earlier commitment to withhold support for companies seeking public listings without sufficiently diverse boards.
Corporate policy changes have accelerated across the country since an executive order signed in January last year by Donald Trump empowered federal agencies to investigate diversity-related programmes. The directive prompted many businesses to reassess or withdraw DEI frameworks amid concerns about regulatory scrutiny and legal exposure.
Goldman Sachs has not publicly commented on the reported governance changes. However, analysts say the development underscores a growing tension between shareholder activism, political influence, and long-running efforts to reshape boardrooms to better reflect social diversity, a debate that is increasingly defining the future direction of corporate governance in the United States.
