Goldman Sachs Recognises the Importance of Board Diversity
“I look back at IPOs over the last four years and the performance of IPOs, [when] it’s been a woman on the board, in the US is significantly better than the performance of IPOs where there hasn’t been a woman on the board,” Goldman Sachs Chief Executive David M. Solomon said at the World Economic Forum in Davos.
The Wall Street giant has announced that, from 1 July 2020, it won’t take any company public unless it has at least one “diverse” board member in 2020, and two in 2021. The initiative aims to increase the presence of “traditionally under-represented groups across various criteria, including gender, race, ethnicity, sexual orientation, or gender identity,” with a particular focus on getting more women on corporate boards. While it’s the biggest financial player to make this kind of statement about board diversity State Street was the first, with its “Fearless Girl” campaign, complete with now famous sculpture, designed to pressure public companies to put more women on their boards.
The benefits of diversity in the boardroom and on the executive team are increasingly being recognised. Organisations wanting to meet the complex challenges of the next decade need to embrace the strength differing perspectives and experience diversity brings, and make best use of these important tools to adapt and succeed.
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Via New York Post, 23 January 2020