Goldman Sachs has accepted a proposal from the National Legal and Policy Center, a conservative nonprofit organization, suggesting the bank discard diversity criteria such as race, gender identity, sexual orientation, and ethnicity when selecting candidates for its board of directors. This move, reported by The Wall Street Journal, comes as Goldman Sachs prepares for its annual shareholder meeting, where the proposal will be included for shareholder consideration.

The National Legal and Policy Center, a shareholder at Goldman Sachs, has been vocal about its opposition to what it perceives as excessive focus on diversity, equity, and inclusion (DEI) initiatives in corporate governance. Sources indicate that Goldman Sachs has communicated to the organization its intent to remove these DEI criteria, and there is anticipation that the board will approve this resolution in the upcoming meeting. This development raises concerns about the future of diversity in corporate governance and could set a precedent for other companies.

Critics of this decision argue that abandoning diversity criteria undermines efforts to create equitable opportunities in corporate leadership. Proponents of the change believe that hiring should focus on merit rather than diversity metrics. As discussions around this proposal unfold, its potential implications for board diversity, representation in corporate leadership, and the reactions of other stakeholders in the financial industry will be closely watched.