JPMorgan Chase & Co. and Goldman Sachs Group Inc. have doubled down on their diversity, equity, and inclusion (DEI) programmes, standing firm against growing shareholder pressure to scale back such initiatives.
In interviews with a media outlet at the World Economic Forum in Davos, Switzerland, the chief executives of both financial giants emphasised their commitment to DEI strategies as vital to their business success and societal impact.
JPMorgan CEO Jamie Dimon responded to criticisms with defiance, calling diversity efforts beneficial for both the company and the communities it serves. “We’re going to continue to reach out to the Black community, the Hispanic community, the LGBT community, and the veterans community,” he said. Dimon noted that these initiatives often receive praise from community leaders and local officials.
He further highlighted that fostering inclusivity has been a positive driver for JPMorgan’s bottom line, pushing back against shareholder demands to separate diversity goals from executive pay.
Similarly, Goldman Sachs CEO David Solomon underlined the importance of diversity in meeting client expectations. Speaking about the firm’s broader priorities, Solomon said, “Our clients think about decarbonisation, climate transition, and the diversity of talent globally. We continue to focus on doing the things we’ve always done.”
Goldman is under pressure from groups like the National Center for Public Policy Research (NCPPR), which has called for an independent audit of the bank’s DEI policies to assess their legal and reputational risks.
Shareholder groups, including the National Legal and Policy Center (NLPC) and the NCPPR, have filed proposals urging JPMorgan and Goldman to reconsider their DEI strategies. The NLPC’s Corporate Integrity Project has specifically called for the removal of DEI-linked executive pay incentives, arguing that such structures are unfair.
Despite this, the banks are resisting. JPMorgan has asked the U.S. Securities and Exchange Commission for permission to exclude the NLPC proposal, stating it contains inaccurate claims about the bank.
Meanwhile, NCPPR deputy director Ethan Peck criticised the firms for refusing to engage. “They care very little about headlines and just do their thing,” he said, contrasting their approach to other corporations more responsive to public and shareholder concerns.
While the shareholder proposals have attracted attention, they face slim chances of success. Similar motions from conservative groups in the past have typically garnered less than 2% support, according to Bloomberg data.
The pushback against JPMorgan and Goldman comes amid a broader wave of criticism targeting corporate DEI initiatives. Companies such as Walmart and Meta have recently scaled back their diversity programmes in response to shareholder and public pressure.
Adding fuel to the debate, former President Donald Trump issued an executive order earlier this week encouraging federal agencies to discourage DEI policies in private companies, labelling such initiatives “dangerous, demeaning, and immoral.”
Despite the backlash, JPMorgan and Goldman Sachs remain steadfast. Both firms view DEI as central to their business strategies and societal contributions. Whether shareholder activism will gain momentum in this space or remain a minority voice is yet to be seen.