Goldman Sachs Group Inc.’s investment bank has created an internal group named Council for Advancement of Racial Equity as a part of its strategy to promote the recruitment of Black employees in its investment banking division (IBD). Goldman’s decision came in response to a massive demonstration against systemic racial discrimination in the US following the death of George Floyd at a police officer’s hands in May 2020. The company has informed its employees about its decision via an internal memo signed by IBD co-heads Gregg Lemkau and Dan Dees on June 30, 2020.
Lemkau and Dees have further clarified in the memo that this move will increase the representation of Black professionals, improve people management, and promote racial inclusion in the investment bank’s leadership. Both Lemkau and Dees will meet with the Council for the Advancement of Racial Equity on a bi-weekly basis to discuss specific recommendations for tangible employment actions.
The newly formed Council for Advancement of Racial Equity will be responsible for creating opportunities for career development and retaining existing Black employees through better training and education on avoiding bias.
According to Goldman spokeswoman Nicole Sharp, the group will work toward improving the investment bank’s employment diversity targets it set in 2019. Goldman planned to hire a total of 11% and 9% Black professionals among its all-new analysts and entry-level associates in the U.S. and the U.K., respectively. Goldman has set a target of hiring 14% Latino professionals as well.
To adopt a diversified strategy, Goldman has revealed its plans to conduct interviews of two diverse candidates for more senior positions and fixed the management pay based on whether they have met the targets. As a part of its diverse employment initiative, Goldman has created a Fund for Racial Equity in June 2020 with the goal of assisting minority organizations that have taken effective steps to deal with racial injustice, structural inequity, and economic inequality.