Goldman Sachs CEO David Solomon on the Need for More Female Hires

David Solomon, leading Goldman Sachs, emphasized that while there has been progress in hiring more women, it's insufficient in truly transforming gender diversity within the company.

During an inquiry regarding the gender composition of their workforce, especially after being scrutinized for underrepresentation of women in high-ranking roles, Solomon affirmatively noted some progress in the right path.

"We have indeed made strides, particularly among senior positions, but it remains clear there's much more to be done. Our focus continues on fostering opportunities," Solomon addressed attendees at the Economic Club of Washington on a recent Thursday. He recalled that the gender imbalance dates back to his early career over 40 years ago, with his initial training class having a composition heavily skewed towards men, at about 90%.

The bank has been under ongoing examination for its shortcomings in gender diversity, even when compared to its predominantly male counterparts on Wall Street. Responding to a Wall Street Journal exposé on the lack of female leaders, the bank issued a detailed 12-point memo in March 2024 to guide senior staff in client communications. Russell Horwitz, Chief of Staff, acknowledged slow advancement but reiterated commitment to nurturing and retaining female talent.

Looking ahead to early November, Goldman is set to reveal its new cohort of managing directors — a key rank right below partners. This upcoming announcement could potentially adjust the leadership demographics. In the last selection, out of 608 new MDs, a landmark 31% were women. The previous year also saw a historic promotion of women to partner roles, with 26 women achieving this rank.

On Thursday, Solomon estimated women constituted about 41% of Goldman's global staff. However, the precise figure was unclear. The 2023 People Strategy Report indicated that in the United States, women accounted for around 43% of employees.

A spokesperson from Goldman Sachs opted not to confirm exact figures of female employees but highlighted recent partner and MD promotion cycles, as referenced in their 2023 report.

Reports indicate a significant turnover among female partners since Solomon took over as CEO in late 2018, with nearly two-thirds having departed or stepped down by March 2024, contrasted with just under half of the male partners. Prominent figures, such as Stephanie Cohen and Beth Hammack, have notably exited under his leadership.