Goldman Sachs Removes Formal DEI Criteria From Board Governance Policy

Goldman Sachs recently removed formal Diversity, Equity, and Inclusion (DEI) criteria from its director selection policy, joining peers such as JPMorgan Chase, Wells Fargo, and Morgan Stanley in revising governance standards. The shift moves focus from demographic mandates to a broader definition of board composition, emphasizing diversity of thought, professional background, and skill sets. Current board demographics highlight significant representation gaps: while 70% of the U.S. workforce holds frontline roles, corporate boards remain dominated by former executives and financial professionals. Furthermore, directors under 40 held just 0.3% of seats in 2023, despite Millennials and Gen Z driving key consumption trends. The analysis suggests that prioritizing attributes like digital fluency, international market experience, and socioeconomic diversity may better mitigate governance risks and prevent customer disconnects similar to recent controversies at Bud Light and Target.