Culture and Talent

Struggling with the gender pay gap, Goldman Sachs releases diversity hiring plan

  • Senior Goldman Sachs execs distributed a note on diversity targets in hiring for 2019.
  • Goldman is stepping up hiring of minorities, but needs to address the gender pay gap.
close

Email a Friend

Struggling with the gender pay gap, Goldman Sachs releases diversity hiring plan

Goldman Sachs has revealed minority hiring targets as it prepares to level up the diversify of its workforce, according to a memo penned by top executives on Monday.

What’s happening:  Goldman’s CEO David Solomon, COO John Waldron, and CFO Stephen Scherr sent a memo out to all GS employees with diversity hiring targets this upcoming year.

In terms of its incoming analyst class, Goldman intends to hire in the Americas:

  • 50 percent women
  • 11 percent black professionals
  • 14 percent Hispanic/Latino professionals

“These goals are anchored in the representation of qualified candidates,” the senior executives wrote in the note. “While they are aspirational, we have access to an incredible talent pool and believe they can be achieved. With focus and persistence, we plan to improve each year towards these goals.”

Looming gender pay gap bombshell?: The Gender Pay Gap reporting rules passed in 2017 in the UK require companies to publicly publish salaries of their employees by gender.

Reporting for 2018 is almost here and with this note,  it appears GS is trying to get out in front of what may be disappointing results when it comes to addressing the gender pay gap at the firm.

In terms of the gender pay gap, Goldman didn’t fare so well in 2017. That year, women were paid 55 percent less than their male peers.

This number is likely misleading, as the UK reporting looks at mean and median salaries, regardless of role. What it does reveal is that fewer women populate senior executive roles at Goldman, where larger salaries are de riguer.

“We need to improve senior representation in order to change the results of these measures, and we are confident that the steps we’ve outlined will help us, over time, increase our representation of all diverse professionals at senior levels,” the note said.

0 comments on “Struggling with the gender pay gap, Goldman Sachs releases diversity hiring plan”

Culture and Talent

“In the good ol’ boys club, knowledge is shared on golf courses, at country clubs, and in locker rooms”: Stax CEO Suneera Madhani on the gender gap in fintech

  • While women comprise 52% of entry-level financial services jobs, the representation of women from entry-level to the C-suite in the industry falls by 80 percent.
  • The need of the hour is for the industry to dedicate itself to the cause of gender equality, holding big VC's and organizations directly accountable.
Subboh Jaffery | May 18, 2022
Culture and Talent

‘Tenure is one of the biggest predictors of overall success’: Inside Bank of America’s workforce reskilling strategy

  • Bank of America’s reskilling efforts play an important role in its employee development and retention strategy.
  • A key area of focus for the bank is retaining its existing employees by offering internal promotions and reskilling opportunities.
Ismail Umar | November 24, 2021
Culture and Talent, Member Exclusive

‘Injustice and inequity constrain our economy’: New coalition wants to advance racial and economic security in financial services

  • A coalition of 18 financial institutions has recently announced their commitment to improving racial and economic equity in financial services.
  • The coalition includes leading companies such as Morgan Stanley, Goldman Sachs, and Bank of America.
Rimal Farrukh | June 01, 2021
Culture and Talent, Member Exclusive

Collaborative spaces, hot desks, and hybrid work models: Fintech firms gear up for work in a post-pandemic world

  • Hybrid work models are becoming more popular as the pandemic recedes.
  • What does this mean for the future of financial services and fintech firms?
Ismail Umar | April 16, 2021
Culture and Talent, Member Exclusive

‘Large swaths are severely underfunded’: How financial services can improve children’s mental health

  • Depression, anxiety and additional mental health disorders have been increasingly affecting children and young adults since the beginning of the pandemic.
  • The Morgan Stanley Alliance for Children’s Mental Health is tackling the mental health epidemic through investment and partnerships with mental health non-profits.
Rimal Farrukh | March 25, 2021
More Articles