Goldman says it won’t take companies public without at least one “diverse” director; here’s what it should have said

TechCrunch | 1/23/2020 | Staff
jenny1246jenny1246 (Posted by) Level 3
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Some of the biggest banks in the United States are among the powerful institutions in the world. But like every incumbent, they still have to hustle to stay relevant. Morgan Stanley has increasingly gotten behind investors who say they want to see more direct listings, for example. Some of those investors wield a lot of influence after all, and if you can’t beat them (and you want to stay ahead of the competition), you’d better join them.

Now Goldman Sachs has made an announcement of its own that’s very much a part of the times: its CEO, David Solomon, today told CNBC that beginning this year, Goldman will no longer take companies public if they don’t have at least one “diverse” member on its board of directors. “Starting on July 1st in the U.S. and Europe, we’re not going to take a company public unless there’s at least one diverse board candidate, with a focus on women,” Solomon said specifically on the network’s “Squawk Box.”

Board - Member - IPO - Cliche - Point

Adding one’s first female board member ahead of an IPO is such a cliche at this point that the more interesting question is how close to the filing a related announcement will be made.

Airbnb, founded in 2008, brought aboard its first female board member in 2018, so let’s call it two years ahead of its presumed 2020 IPO. A decade is a long time to go without any diversity on a board, but it’s also not atypical. Slack’s first female board member, Sarah Friar, joined the company in March 2017, roughly two years before the company — eight years old at the time — staged its direct listing last year. Similarly, Peloton, the fitness company, now eight years old, brought aboard its first female board director, Pamela Thomas-Graham, in the spring of 2018; in September of last...
(Excerpt) Read more at: TechCrunch
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