Goldman Sachs will pay $215 million to settle gender bias lawsuit

Goldman Sachs said on Monday it would pay $215 million to settle a lawsuit that accused the bank of systematic discrimination against thousands of female employees. The money will be divided among about 2,800 women, and the bank has agreed to change some of its practices.

The individual compensation amount itself is less than it might seem: subtracting the legal fees, it comes to about $47,000 per plaintiff. However, the settlement is the latest attempt to get Wall Street to stand up to what critics say are years of unequal and unfair treatment of female workers.

The lawsuit accused Goldman of obstructing women’s career advancement and underpaying her male colleagues. They took particular aim at the company’s performance review process, which they said favored men, preparing them for promotions and higher wages.

It was introduced in 2010 Led by three former employees, the suit was granted class action status in 2018 and includes women with the titles associate or vice president in Goldman Sachs’ investment banking, investment management and securities divisions. A trial was scheduled for June.

“I have been proud to have supported this cause without hesitation for nearly 13 years, and I believed this settlement would help the women who had it when the case was brought,” Shana Urlich, one of the original plaintiffs in the lawsuit, said in a statement. .

Jacqueline Arthur, Head of Human Capital Management at Goldman, said the company is “proud of its long track record of empowering and advancing women and remains committed to ensuring a diverse and inclusive workplace for all of our employees.”

Wall Street has sought to address gender inequality and discrimination in recent years, after facing a long list of complaints. Smith Barney, for example, Paid 150 million dollars in 1998 to settle a lawsuit claiming to have tolerated a hostile work environment that included pay disparities and derogatory language toward women.

Since becoming CEO of Goldman, David Solomon has talked about trying to increase diversity at the company, including by Setting goals How many new employees should be women. Last year, the bank said 29 percent of its most recent category of partner managing directors, the highest ranking, were women.

In addition to the payment, the settlement stipulates that Goldman Sachs hire independent experts to study the performance review process and conduct shareholder equity studies in pay for three years, as well as change how it presents career advancement status with vice presidents.