As of July, the Goldman Sachs banking group will not help to go public with any European or American company that does not have at least one “diverse” member on its board of directors, preferably a woman.
The bank’s decision comes after analyzing the results of companies that in recent years have made public offers of shares in the United States and found that those with a female presence have done “significantly better.”
“As of July 1, in the US and in Europe, we are not going to take any company into the stock market unless we have at least one diverse candidate in the board of directors, focusing on women,” said the CEO of Goldman Sachs, David Solomon, in an interview with the financial channel CNBC.
By 2021, Goldman Sachs intends to require a minimum of two, Solomon explained from the Davos Forum (Switzerland).
According to the bank’s top executive, about 60 companies have recently gone public in the US. and Europe with boards formed exclusively by white men.
“We may lose some business, but in the long run I think this is the best advice we can give to companies that want to give quality returns to their shareholders,” said Solomon.
In his opinion, one of the factors that explain the lack of diversity in many meetings is that the majority of the candidates are chosen among people who have already worked as executives of other companies, which closes the way for many women.
In that sense, Solomon said Goldman Sachs is willing to help clients find suitable candidates.
The intention of the New York-based bank is to extend this new policy to all privately owned companies in which it is a majority shareholder, a source from the entity told the New York Post.
In the case of Goldman Sachs, four of the eleven members of its board are currently women.