Numerous media sources (see, e.g., CNBC, Marketplace, The New York Times, WCBI) reported on Goldman Sachs CEO David Solomon's statement last week on CNBC's Squawk Box that the investment banker won't take companies public unless they have at least one diverse board candidate, with a focus on women. The new policy - planned to kick off in the US and Europe on July 1st - purportedly will expand to at least two diverse candidates next year. Solomon claimed that history shows that IPO boards that include women have outperformed those without:
And I come from a position of my own experience where I look at the Goldman Sachs board. We have four women out of 11. We have a black lead director. I really value the diverse perspectives, you know, I’m getting which are helping me run the company. I look back at IPOs over the last four years and the performance of IPOs where there’s been a woman on the board in the U.S. is significantly better than the performance of IPOs where there hasn’t been a woman on the board.
Solomon also volunteered the bank's extensive network to assist clients with finding female candidates.
WomenCorporateDirectors Foundation commended Solomon's pronouncement, and called on the heads of other financial institutions to follow suit.
See also this Cooley post. This post first appeared in this week's Society Alert!