Wall Street giant Goldman Sachs this week announced plans to remove DEI language from its criteria for board members, a move other corporate boards may be contemplating as anti-DEI sentiment continues making inroads across corporate America.
The National Legal and Policy Center (NLPC) has submitted shareholder proposals asking 11 companies, including Goldman Sachs, to eliminate DEI policies regarding board representation. As these proposals persuade more companies to abandon DEI initiatives, board members in all industries should consider what position they will take if they are targeted by activist investor proposals requesting DEI criteria be removed from their board selection process.
According to a Fox Business report, Goldman’s governance committee uses a broad description of diversity which includes viewpoints, background, work experience and military service when choosing board directors. However, the NLPC focused on having the use of criteria such as “other demographics”—which included race, gender, ethnicity and sexual orientation—removed from Goldman’s board selection process.
Goldman agreed to remove the DEI language from its criteria for board members in exchange for the NLPC withdrawing its shareholder proposal. That is certainly a compromise companies facing similar shareholder actions could consider. However, any board that is interested in having truly diverse members that are somewhat reflective of its customer base or the U.S. population should take actions that can lead to that goal. Written policies can be attacked by shareholders; it is a lot harder to attack the selection of an effectively functioning board, no matter what the race, gender, ethnicity or sexual orientation of its members are. Here’s what boards can do:
• Study companies with diverse boards and adopt what they do, where appropriate. Smart companies can learn from competitors. What type of criteria for board selection do companies with diverse boards have? How have they communicated these criteria to the public? How do their written policies read? Are they handling the anti-DEI movement well or are they soon to be a target?
• Significantly change recruiting strategies. If you want to be more inclusive, it may require recruiting in places you haven’t recruited before. If all you know are men, it may be difficult for you to recruit women. Consider expanding the recruiting methods you’ve been using. Directors at other companies with the skills and profile you are looking for may know other candidates like them. Consider changing recruiting firms if they aren’t delivering the candidates you are looking for, or search for board preparation programs which often have younger, undiscovered talent. If you continue going to the same well for talent, it may eventually run dry. A 2025 PwC survey reported that a record 55 percent of directors felt that at least one member of their board should be replaced. You have little to lose by expanding recruitment strategies.
• Hire people who are not opposed to diversity. There will be those who oppose diversity at any level. People of specific races have been labeled a “DEI hire” no matter what their credentials are. If you want diversity in your company, strive to hire those who can be objective about candidates regardless of their race, gender, ethnicity or sexual orientation. Companies must be intentional in order to make sure this happens.
