Goldman Sachs CEO David Solomon has recognized that the bank’s efforts to enhance gender diversity in its workforce still fall short. During a recent address at the Economic Club of Washington, Solomon stated that while the bank has made strides in hiring women, it has not done enough to address the gender imbalance, particularly in leadership positions.
Solomon’s comments come at a time when Goldman Sachs is under scrutiny for its historical lack of female leaders. He noted, “We’ve made a bunch of progress, especially in the senior ranks, but candidly not enough, and we continue to be focused on creating opportunities.” He emphasized that achieving gender equity is a challenging journey, recalling that his training class over four decades ago was comprised of 90% men.
Current Workforce and Future Changes
The firm has faced ongoing criticism regarding its gender diversity, particularly as it competes with other major financial institutions. In March 2024, Goldman Sachs circulated a 12-point internal memo aimed at improving communication regarding gender diversity after a report from the Wall Street Journal highlighted the bank’s deficiencies in female leadership. The memo, authored by Chief of Staff Russell Horwitz, acknowledged that “progress has been slow” while reaffirming the bank’s commitment to advancing and retaining women in its ranks.
Goldman Sachs is preparing to announce its latest cohort of managing directors in early November. This new class could significantly impact the bank’s leadership demographics. Of the most recent class of 608 managing directors, a record 31% were women. Additionally, last year, Goldman promoted 95 individuals to partner, including a record 26 women.
As of Thursday, Solomon estimated that women represent 41% of the bank’s total workforce, although he admitted uncertainty regarding the exact figure. According to the bank’s 2023 People Strategy Report, approximately 43% of employees in the United States are women. A spokesperson for Goldman Sachs declined to provide updated percentages of female employees, referring inquiries to the recent promotion cycles and the 2023 report.
Challenges in Retaining Female Leaders
The bank’s challenges extend beyond hiring, as data reveals concerning trends in retention. By March 2024, nearly two-thirds of the women who held partner positions when Solomon became CEO in late 2018 had departed or no longer maintained that title. In contrast, just under half of male partners experienced similar outcomes during the same timeframe. High-profile women, including Stephanie Cohen and Beth Hammack, have also exited the firm during Solomon’s tenure.
As Goldman Sachs continues to navigate the complexities of gender diversity within its ranks, the upcoming leadership changes may offer a pivotal moment for the bank. The commitment to fostering a more inclusive environment remains a central focus for Solomon and his leadership team, who are determined to create equitable opportunities at all levels of the organization.
