Posted on 01/23/2020 11:35:07 AM PST by karpov
Goldman Sachs CEO David Solomon said Thursday that the powerful investment bank will only finance initial public offerings (IPOs) for companies that have at least one nonwhite male board member.
Solomon said during a Thursday interview with CNBC that as of July 1 in the U.S. and Europe, Goldman “is not going to take a company public unless there is at least one diverse board candidate, with a focus on women.”
“Diversity on boards is a very very important issue, and we've been very very focused on it and so we're trying to find ways to encourage that,” Solomon told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland.
“This is a small step, but it's a step in the direction of saying, ‘You know what? We think this is right. We think it's the right advice,' ” he said.
Solomon argued that there is significant financial incentive for companies to diversify their boards, citing his own experiences leading Goldman and analyzing IPOs.
“We have four women out of 11, we have a black lead director. I really value the diverse perspectives I'm getting, which are helping me on the company,” Solomon said.
(Excerpt) Read more at thehill.com ...
Somehow rich white guys like David Solomon never resign from their own positions for the sake of diversity.
No, it’s not the Babylon Bee.
Though I completely agree, it is a free country. Only the government is prevented by the constitution from discriminating. The constitution protects the right of the rest of us to discriminate for any reason.
Go woke...
How woke!
So, they will be turning down billions in business because...why? Oh, diversity.
I met and interacted with a female ITT VP. (Not the same as a board member, but she was obviously being groomed.) She was gorgeous and dressed like a fashion model. She had sh*t for brains.
Lots of those out there.
Only the government is prevented from discriminating?
Ever hear of the fair housing act?
Just one example of many laws that get passed for discrimination.
Besides, even if it’s not against some law and not criminally prosecution doesn’t mean you can’t sue goldman civilly for discrimination.
Too bad the courts have ruled otherwise.
I would like to see the actual financial formula that proves that.
Something like this...
.
I’m going to change my name to “Token Minority”. I’ll make a fortune!
How is this not blatant discrimination?
Goldman and the Government are joined at the hip.
I would have said competence was important, but then I'm a linear-thinking white Christian male meritocrat, so they won't find that persuasive. I don't care, their stupidity doesn't create an obligation on me. If they're valuing "diversity" implicitly more highly than merit, then they're saying competence isn't the key criteria if it reduces "diversity". Maybe they even want diversity of competence levels. Can't have everyone on a board be smart, then you might outperform your competition and it would hurt their feeeeeeewings.
So, they will be turning down billions in business because...why? Oh, diversity.
It’s worse than that. By disqualifying the top companies, they are forced to invest in the also-rans.
I’m sure this will all work out fine.
As a public company, Goldman Sachs has a fiduciary responsibility to its owners (investors) to do its best to maximize profit. This policy would violate its duty. The question is: What can be done about it? Shareholder suits probably won’t do anything.
You are right that there are laws prohibiting discrimination. But there is no law prohibiting investment discrimination. Nor is there some general common-law cause of action for “discrimination.”
If discrimination does not violate a statute, then it is not a basis for a lawsuit.
But hey, she had two X chromosomes!
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