Goldman Sachs chief executive officer (CEO) David Solomon on Thursday said his investment bank wouldn't help companies go public without at least one "diverse" board member, which will be raised to two towards 2021.
Solomon said the performance of public offerings of US companies with at least one female director is "significantly better" than those without as seen over the last four years.
"Starting on July 1st in the US and Europe, we are not going to take a company public unless there's at least one diverse board candidate, with a focus on women. And we’re going to move towards 2021 requesting two," Solomon said during an interview to CNBC at the World Economic Forum in Davos, Switzerland.
About 60 companies in the US and Europe have gone public recently with all white, male boards, he said.
Not worried about short-term business losses, Solomon added, "Look, we might miss some business, but in the long run, this I think is the best advice for companies that want to drive premium returns for their shareholders over time."
With four women on its 11-person board, Goldman with its extensive network of corporate executives could help clients find female board candidates if needed, he added.
"This is an example of our saying, 'How can we do something that we think is right and helps moves the market forward?’" said Solomon in the CNBC interview.
Solomon is heading the New York-based investment bank since October 2018 and is expected to share the company's long-term financial targets at Goldman's first investor day later this month.
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