Goldman Sachs CEO David Solomon has recognized that the investment bank needs to enhance its efforts in hiring women, despite some progress in recent years. Speaking at the Economic Club of Washington on Thursday, Solomon candidly addressed the bank’s ongoing challenges with gender diversity, particularly in leadership positions.
Solomon stated that while Goldman Sachs has made strides, it has “not enough” progress in creating opportunities for women. He noted that the firm’s historical culture has been male-dominated, recalling that his training class over four decades ago consisted of 90% men. The need to improve gender representation has gained attention, especially after the bank faced criticism last year for its lack of female leaders.
In response to the scrutiny, Goldman Sachs circulated a 12-point internal memo in March 2024, after a report by the Wall Street Journal highlighted the bank’s demographic shortcomings. In the memo, Chief of Staff Russell Horwitz acknowledged that “progress has been slow” while reiterating the bank’s commitment to promoting and retaining female employees.
Goldman Sachs is set to announce its newest class of managing directors in early November, a move that could potentially reshape its leadership demographics. In the latest promotion cycle, 31% of the 608 individuals promoted to managing director were women, marking a record for the bank. Last year, Goldman promoted 95 individuals to partner, including a record 26 women.
Solomon estimated that women currently make up approximately 41% of Goldman’s total workforce, although he stated he was uncertain of the exact percentage. According to the bank’s 2023 People Strategy Report, around 43% of employees in the United States are women. When approached for an updated percentage of female employees, a representative for Goldman Sachs referred inquiries to its recent partner and managing director promotion cycles and the 2023 report.
The issue of gender diversity is compounded by the departure of high-profile women from the firm. Reports indicate that about two-thirds of the women who held partner positions when Solomon became CEO in late 2018 have left or no longer hold that title by March 2024. In contrast, just under half of male partners have exited during the same timeframe. Notable women such as Stephanie Cohen and Beth Hammack have also departed under Solomon’s leadership.
As Goldman Sachs prepares to unveil its latest managing director class, the focus remains on addressing gender diversity and fostering an inclusive environment at all levels of the organization. Solomon’s acknowledgment of the work still required reflects a broader commitment to improving opportunities for women within the firm and the financial industry at large.
