Goldman Sachs Ends Board Diversity Rule Amid Legal Pressure

Goldman Sachs has announced the termination of its policy requiring at least two diverse board members for companies it helps take public, citing recent legal developments such as a federal appeals court ruling against Nasdaq's board diversity quotas. This decision aligns with a broader rollback of diversity, equity, and inclusion (DEI) initiatives across major corporations in response to legal challenges and conservative backlash. Despite ending the formal policy, Goldman Sachs maintains that diverse boards are beneficial and will continue to encourage this approach. The move is part of a trend following the Supreme Court's decision against affirmative action, reflecting a growing retreat from quota-based diversity measures in the business world. Other companies, including Meta and Deloitte, are also scaling back their DEI goals, as evidenced by changes in their diversity strategies and performance metrics. This shift signals a significant change in corporate DEI policies, influenced by legal and political pressures.