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Goldman Sachs' Gender Pay Gap Widens in 2023, But Commitment to Equality Remains Strong

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Goldman Sachs UK gender pay gap widens to 54% despite efforts to promote women and increase transparency.

By Athena Xu

4/3, 19:04 EDT
Goldman Sachs Group, Inc.
Morgan Stanley
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Key Takeaway

  • Goldman Sachs UK's gender pay gap widened to 54% in 2023, despite efforts to promote gender equality.
  • The firm aims for women to be at least 40% of vice presidents by 2025, reflecting its commitment to diversity.
  • Celebrated its most diverse partner class in 2022; women constituted 29% of the group.

Goldman's Commitment to Gender Equality

Goldman Sachs, a leading global investment banking, securities, and investment management firm, is set to release its gender pay gap report for its UK operations, demonstrating its ongoing commitment to transparency and gender equality in the workplace. Despite facing challenges in narrowing the gender pay gap, which slightly widened in 2023, Goldman Sachs is actively taking steps to address this issue and promote more women into top positions.

A Transparent Approach

The mean hourly pay difference between men and women at Goldman Sachs International, its main UK entity, saw a marginal increase from 53.2 percent in 2022 to 54 percent in 2023. Similarly, at Goldman Sachs Asset Management International, the gap widened slightly to 54.1 percent from 51.3 percent. These figures, while showing a need for improvement, also highlight Goldman Sachs' transparent approach to addressing gender disparities within the firm. A spokesperson for the bank emphasized, "Importantly, this gender pay gap report does not account for pay in similar role or tenure, but we know that we need to do more to increase representation of women at the senior-most levels of the firm."

Strides Towards Equality

Goldman Sachs has not been passive in its efforts to promote gender equality. Since 2017, when UK companies with 250 or more employees were required to publish their gender pay gap, Goldman has been at the forefront of efforts to enhance female representation within its ranks. The bank's CEO, David Solomon, has been vocal about the firm's commitment to promoting female executives, setting a target for women to comprise at least 40 percent of the bank’s vice presidents by 2025.

Celebrating Diversity

The firm's dedication to diversity was evident in its most recent partner class in 2022, which was its most diverse ever, with women making up 29 percent of the 80-person group. Additionally, of the 608 Goldman employees promoted to managing director last year, 31 percent were women. These figures are a testament to Goldman Sachs' commitment to fostering a more balanced and inclusive workforce.

Industry Perspective

Goldman Sachs' efforts to narrow the gender pay gap and promote gender equality are reflective of broader industry challenges and initiatives. Rival Morgan Stanley reported a slight decrease in its mean pay gap at its main UK subsidiary, indicating a shared focus among leading financial institutions on addressing gender disparities. Financial groups often advocate for a bottom-up approach to bolstering diversity, a strategy that Goldman Sachs is actively pursuing.