Goldman Sachs will pay $215 million (£170.5 million) to settle charges that it underpaid and underrepresented women.
The settlement comes one month before the lengthy class-action lawsuit was scheduled to go to trial.
It resolves claims from approximately 2,800 female bank employees in the United States.
As part of the agreement, Goldman will collaborate with outside experts to examine its pay structures and methods of advancement.
Shanna Orlich, one of the women who originally submitted the legal complaint, stated, “I’ve been proud to support this case without reservation for nearly 13 years, and I believe this settlement will benefit the women I had in mind when I filed the case.”
Since 2010, women have accused the Wall Street titan of a “boys club” work climate that hindered female growth. The accord ends the legal issue.
The bank was accused of underpaying female vice presidents 20% and permitting sexual harassment.
By 2025, Goldman aims to have 40% of its vice presidents be female. Goldman has stated that it wants to increase the number of women in its upper echelons.
Currently, approximately 29% of Goldman’s partners and managing directors are female.
“After more than a decade of vigorous litigation, both parties have agreed to resolve this matter,” stated Jacqueline Arthur, global head of human capital management for Goldman Sachs.
She stated that the bank was dedicated to “ensuring a diverse and inclusive work environment for all of our employees.”
The settlement amount was described as “substantial” by one of the women’s solicitors, Kelly Dermody.
Women who worked for the investment banking, investment management, or securities divisions of the bank in the United States as early as 2002 may be eligible for a portion of the money.
There have been numerous allegations of pay discrimination against women, particularly in industries such as finance and technology.
In the United Kingdom, where Goldman is required to report on pay by gender to the government, the typical male at the firm earned at least 20% more than the typical woman – a significantly larger disparity than the national average of 9.4%. These numbers do not allow for differences in rank or position.
Google paid $118 million to 15,000 women in 2018, while Riot Games gave 2,300 women $100 million in 2021.
