Goldman Sachs Shareholders Reject Anti-DEI Proposals

In a thundering declaration of confidence in diversity, equity, and inclusion (DEI), Goldman Sachs shareholders overwhelmingly voted down two proposals targeting the company's DEI initiatives. At the firm's annual general meeting, nearly all shareholders stood in support, with 98% overwhelmingly rejecting the proposals. Both of the proposals had been filed by conservative think tank National Center for Public Policy Research (NCPPR).

The proposals, which received just 2% of shareholder backing each, aimed at major areas of Goldman Sachs' DEI initiatives. One aimed to strip DEI-related metrics from executive compensation packages, and the other requested a comprehensive review of what the NCPPR characterized as the legal and reputational risks associated with the bank's diversity initiatives. The proposals squarely targeted initiatives like Goldman's "Inclusion Networks," mentorship programs designed to benefit underrepresented groups, race-based executive goals, and diversity-oriented investment initiatives.

The Goldman Sachs board had also forcefully recommended that shareholders vote against the proposals, stating that diversity is an essential ingredient of the firm's success. In its proxy recommendation, the board emphasized that a diverse staff—reflecting different thoughts, experiences, and perspectives—is at the core of its commercial strategy and operational excellence. It reaffirmed the bank's strong position against discrimination, pointing out that Goldman Sachs has "no place" for any kind of bias based on protected characteristics.

During the Q&A session at the meeting, the presenter of the proposals pressed Goldman Sachs CEO David Solomon to comment on the bank’s support for LGBTQ+ rights, specifically questioning the company’s stance on what he referred to as “transgenderism.” Solomon responded with a clear affirmation of the firm’s values, stating, “We run an inclusive organization, and we’re going to continue to run an inclusive organization.”

The defeat of the proposals at Goldman Sachs represents a larger trend of shareholder pushback against anti-DEI initiatives throughout corporate America. Comparable attempts by the NCPPR and like-minded organizations have been foiled at several of the biggest companies within the last few months, including Apple, Costco, John Deere, and The Walt Disney Company. In spite of increased scrutiny within political and legal arenas, particularly since the U.S. Supreme Court's ruling to eliminate affirmative action from college admissions, business stakeholders are mostly united in the importance of preserving and advancing DEI policies.

The controversy surrounding DEI practices has become more and more polarized, with opponents tending to argue that such initiatives represent unfair or unlawful favoritism. In Goldman's instance, the NCPPR accused the firm's DEI initiatives of being "unethical and illegal racial discrimination," and demanded an independent racial discrimination audit. The overwhelming shareholder vote, however, suggests that such concerns are not generally held among the bank's shareholders.

Goldman Sachs did admit that it has made some changes to its DEI filings in response to the changing legal landscape in the United States. CEO David Solomon confirmed that one section dealing with diversity and inclusion was deleted from the company's annual regulatory filing. He characterized the move as a matter of legal compliance, not a change in the firm's values.

Goldman Sachs' commitment to DEI continues to be a strategic priority, even as the legal and political landscape evolves. The board's consistent messaging is that promoting a diverse and inclusive culture, in addition to being aligned with the firm's values, sparks innovation, manages risk, and leads to long-term shareholder returns.

Amidst political and legal criticism, the shareholder vote stands as a strong validation of DEI by Goldman Sachs' investor base. It is an expression of confidence in the belief that diversity and equitable representation are not only moral necessities, but also essential forces behind sustainable growth and competitive advantage. While corporate America continues to navigate all of these complex social dynamics, Goldman Sachs' recent shareholder meeting has provided a clear message: diversity and inclusion are here to stay.