Goldman Sachs Ends IPO Diversity Rule Following Legal Challenges

The investment bank discontinues its policy requiring diverse corporate boards, citing legal changes and claiming the rule has fulfilled its purpose.

Goldman Sachs has officially ended its policy barring IPO services for companies with all-White or all-male boards in the U.S. and Western Europe.
The rule, implemented in 2020, required at least one female and one non-White board member but was reversed due to recent legal developments invalidating similar mandates.
A federal court struck down a comparable Nasdaq diversity rule in 2022, influencing Goldman's decision to discontinue its policy.
Goldman executives stated the rule successfully encouraged board diversity during its tenure and will continue to promote diverse candidates through other initiatives.
The rollback aligns with a broader shift in corporate and governmental stances on DEI measures, including recent executive actions by President Trump targeting such policies.