Boards packed with bros don’t get IPOs.
That’s the new policy at Goldman Sachs, whose chief executive David Solomon said the Wall Street giant won’t take any company public unless it has at least one “diverse” board member.
In a Thursday interview with CNBC, Solomon said the new initiative will particularly focus on getting more women on corporate boards. The requirement will ratchet up to two diverse board members in 2021, he added.
“I look back at IPOs over the last four years and the performance of IPOs, [when] it’s been a woman on the board, in the US is significantly better than the performance of IPOs where there hasn’t been a woman on the board,” Solomon said at the World Economic Forum in Davos, Switzerland.