Goldman Sachs’ new board member diversity rule misses the mark

Goldman Sachs’ new board member diversity rule misses the mark

4 years ago
Anonymous $yQ5BfQaAxy

https://techcrunch.com/2020/01/24/goldman-sachs-new-board-member-diversity-rule-misses-the-mark/

Goldman Sachs CEO David Solomon recently said the investment bank won’t take companies public that don’t have at least one board member from an underrepresented group. The main focus will be on female board members, he told CNBC, because companies that have gone public in the last four years with at least one woman on their board of directors performed “significantly better” than those without. The new rule is set to go into effect in the U.S. and Europe on July 1.

While the move is significant, what Solomon and Goldman are doing is not a novel idea, nor is it the best version of an outdated idea. It reminds me of something Salesforce CEO Marc Benioff said a few years ago at Dreamforce: