Goldman Sachs to Remove Demographic Criteria from Board Selection Policy

Goldman Sachs to strip demographic criteria from board selection policies

Goldman Sachs is moving to remove explicit race, gender identity, sexual orientation and other demographic factors from the formal guidelines its governance committee uses to evaluate potential directors, people familiar with the plans say. The bank is revising language after a proposal from the conservative group National Legal and Policy Center (NLPC) urged elimination of diversity-based criteria; Goldman tells the group it will change the policy and the NLPC withdraws the proposal pending formal board approval. The governance committee continues to weigh experience, background and perspective, but the demographic component is expected to be excised from the written policy.

Executives frame the change as a response to legal and governance concerns, saying use of identity characteristics could expose the firm to discrimination claims and other legal risks. The move follows a wider pullback at the bank over the past year: Goldman is already scaling back several diversity initiatives, revising its One Million Black Women program to remove explicit references to race and ending an internal policy that required certain companies to have diverse boards before going public with the bank. Critics counter that removing demographic considerations undermines efforts to broaden board representation and ask why identity was considered at all; supporters call the revision a governance clarification.

The decision also reflects a shifting political and regulatory climate that executives say influences corporate compliance choices. After the 2024 presidential transition, Goldman and other firms face heightened scrutiny of DEI and ESG programs from regulators and certain shareholder activists, and the bank’s leaders present the policy change as risk management rather than a repudiation of inclusion goals. Investors, proxy advisers and governance experts watch closely for the board’s formal approval and for whether peer banks follow suit or pursue alternative mechanisms to preserve diverse pipelines without codified demographic criteria.

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Industry watchers consider legal and reputational risks

Governance specialists and other major banks are assessing whether to mirror Goldman’s policy revision, while lawyers note that guarantees of director selection based on identity could face judicial or regulatory tests. The fast‑changing environment prompts institutions to recalibrate how they balance diversity objectives with perceived legal and compliance exposures.