Despite the 2018 pledge of Goldman Sachs CEO David Solomon to advance women to senior levels, the Wall Street Journal reveals that the bank is struggling to make good on the promise.
In the intervening years, two-thirds of the female partners have left or lost their titles. In comparison, just under half the male partners faced the same fate. Additionally, no woman currently leads a major division with the bank or is being considered as a credible successor to Solomon.
Solomon has recognized the issue, saying, “Advancing women into our most senior ranks is an area where we have not accomplished our goals. Our longer-term success depends significantly
on developing female partners in senior roles.”
Limited Advancement Opportunities at Goldman Sachs?
The issue is particularly pronounced in Goldman’s investment banking and markets division, where numerous high-performing female partners have departed due to limited advancement opportunities.
Notable exits include Stephanie Cohen, who coheaded the consumer and wealth management business. Beth Hammack, a top trader who was moved to cohead global financing, has also moved on. Both women faced challenges in their roles, with Cohen’s division facing criticism and Hammack feeling sidelined after missing out on the CFO position.
Goldman Sachs Struggles with Gender Diversity
The firm’s struggles with gender diversity extend beyond individual cases. Systemic issues—such as restructuring that adds male executives above women and new experience requirements that disproportionately affect women —have contributed to the problem. Some current partners have also reported instances of female colleagues’ work being denigrated.
Goldman Sachs Claims & Scrutiny
Despite these challenges, Goldman Sachs maintains that the percentage of female partners is at an all-time high, with 19 percent of the current partners being women. The firm also asserts that it has increased the number of women it recruits and promotes to vice president, managing director, and partner levels.
As Goldman Sachs continues to grapple with these issues, the broader conversation around gender diversity in the financial industry persists. With some of its peers making more progress in promoting women to senior roles, Goldman’s efforts and outcomes in this area remain under scrutiny.
Continue reading The Wall Street Journal’s full detailed report on Goldman Sachs gender equality issues.
