Goldman Sachs announced it will remove race, sex, sexual orientation, and gender identity from the criteria used to evaluate potential board members, ending the inclusion of DEI (diversity, equity, and inclusion) metrics in its governance rubric.

The decision comes after the bank reached an agreement with the National Legal and Policy Center, which had proposed that Goldman Sachs eliminate DEI factors from board selection guidelines. The center holds a small ownership stake in the bank and had initially requested the proposal be shared with shareholders ahead of the spring annual meeting. Goldman Sachs instead agreed to remove the DEI component voluntarily, leading the center to withdraw its shareholder submission.

Previously, the board’s governance committee considered four broad factors when evaluating new members, including a demographic profile accounting for viewpoints, military service, and DEI variables. Going forward, demographic diversity measures related to DEI will no longer influence board appointments.

This move follows a broader trend in which Goldman Sachs eliminated DEI requirements for companies seeking its assistance in initial public offerings last year. Conservatives have praised the change as aligning with efforts to prioritize merit and qualifications over demographic factors.

The action also reflects the Trump administration’s stance on DEI in both public and private sectors. Federal directives have pushed agencies to reduce DEI positions and scrutinize corporate DEI policies for potential discriminatory effects. Last year, President Donald Trump specifically targeted financial firms, including Institutional Shareholder Services and Glass Lewis, over guidelines encouraging racial quotas and climate activism in board appointments.

By removing DEI from its board evaluation process, Goldman Sachs signals a shift toward prioritizing professional qualifications and experience over mandated diversity metrics, a move that conservative observers say reinforces merit-based governance practices.