Goldman Sachs has agreed to settle a long-running class action lawsuit for $215 million, which alleged the bank engaged in gender discrimination in pay, performance evaluations, and promotions.
The Goldman Sachs gender discrimination lawsuit, initially filed in September 2010, involved approximately 2,800 female associates and vice presidents in the investment banking, investment management, or securities divisions of the second biggest investment bank in the world, according to AP News.
The settlement also includes a three-year period during which Goldman Sachs will work with an independent expert to reassess its performance evaluation processes, investigate pay equity gaps, and improve its promotion process, as per a report from PBS. The plaintiffs expressed satisfaction with the settlement and its potential to advance gender equity.
Aside from the payment, the settlement includes a three-year period during which Goldman will work with an independent expert to perform more analysis on its performance evaluation processes for promoting individuals from vice president to managing director. It also requires an independent expert to conduct additional pay equity studies and for the New York City company to investigate and address any gender pay gaps where appropriate.
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Goldman Sachs To Further Promote Diversity
Jacqueline Arthur, Goldman Sachs' global head of human capital management, stated that the firm will continue to prioritize the creation of a diverse and inclusive workplace for its people, clients, and business.
The commitment of Goldman Sachs to increasing diversity has been evident since CEO David Solomon took office, setting goals for the proportion of female new hires, among other things, The New York Times reported.
Last year, the bank announced that its highest rank, partner managing directors, had a record 29% of women, indicating significant progress toward greater gender equity.
Many Wall Street corporations have been accused of gender discrimination. In 1998, Smith Barney paid $150 million to resolve a complaint alleging a hostile work environment with pay inequities and disparaging comments against women.
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