News

Economy & Business

Goldman Sachs Will No Longer Take Companies Public Unless They Have at Least One ‘Diverse’ Board Member

(Brendan McDermid/Reuters)

The chief executive of Goldman Sachs announced Thursday that the bank will not help companies go public unless their boards include at least one “diverse” board member.

Goldman Sachs CEO David Solomon said the bank plans to implement a policy in July to stop financing initial public offerings of companies that have no minority or female board members.

“Starting on July 1st in the U.S. and Europe, we’re not going to take a company public unless there’s at least one diverse board candidate, with a focus on women,” Solomon told CNBC at the World Economic Forum in Davos, Switzerland. “And we’re going to move towards 2021 requesting two.”

Solomon said he is willing to risk losing business over the policy, but he added that the public offerings of U.S. companies with at least one female director have tended to do “significantly better” during the past four years.

“Look, we might miss some business, but in the long run, this I think is the best advice for companies that want to drive premium returns for their shareholders over time,” Solomon said. “This is an example of our saying, ‘How can we do something that we think is right and helps moves the market forward?’”

Solomon even offered to help companies find and select female board candidates if they want the assistance. Currently, four of Goldman Sachs’s 11 board members are women.

“We have four women out of 11, we have a black lead director. I really value the diverse perspectives I’m getting, which are helping me on the company,” Solomon said.

Most Popular

U.S.

Women’s Sports Should Be Women’s Sports

Transgender sports policies make a mockery of women’s competition. Just look at the state of Connecticut. At the 2018 state open for women’s track and field, two young men identifying as transgender took first and second place in the 100m race. Their participation not only deprived young women of their ... Read More
U.S.

Women’s Sports Should Be Women’s Sports

Transgender sports policies make a mockery of women’s competition. Just look at the state of Connecticut. At the 2018 state open for women’s track and field, two young men identifying as transgender took first and second place in the 100m race. Their participation not only deprived young women of their ... Read More

South Park as Healing Mechanism

It didn’t take too long into 2020 for people on Twitter to start earnestly debating whether South Park, an extremely popular show that has been on air for decades, has been wreaking havoc on our society with its offensiveness. As far as I can tell, the conversation started with a series of tweets from She-Hulk ... Read More

South Park as Healing Mechanism

It didn’t take too long into 2020 for people on Twitter to start earnestly debating whether South Park, an extremely popular show that has been on air for decades, has been wreaking havoc on our society with its offensiveness. As far as I can tell, the conversation started with a series of tweets from She-Hulk ... Read More
Elections

Four Overlooked Weaknesses of Bernie Sanders

Four frequently overlooked weaknesses of Bernie Sanders: Another health issue, even a minor one, would end his campaign. Trying to knock off a candidate who has the largest plurality of delegates in a convention floor fight is an extremely difficult task … unless that candidate is 78 years old and has had ... Read More
Elections

Four Overlooked Weaknesses of Bernie Sanders

Four frequently overlooked weaknesses of Bernie Sanders: Another health issue, even a minor one, would end his campaign. Trying to knock off a candidate who has the largest plurality of delegates in a convention floor fight is an extremely difficult task … unless that candidate is 78 years old and has had ... Read More
Law & the Courts

Florida Bill to Ban ‘Nature Rights’

I have been warning that “nature rights” would soon become part of the Democratic Party's environmental platform. That hasn't happened at the national party level -- yet. But Florida's Democratic Party has embraced the idea that nature should have rights that anyone can sue to enforce in its official ... Read More
Law & the Courts

Florida Bill to Ban ‘Nature Rights’

I have been warning that “nature rights” would soon become part of the Democratic Party's environmental platform. That hasn't happened at the national party level -- yet. But Florida's Democratic Party has embraced the idea that nature should have rights that anyone can sue to enforce in its official ... Read More