Goldman Sachs chief executive David Solomon announced Thursday that his investment firm would no longer finance initial public offerings (IPOs) for companies that have only white male board members.
Beginning on July 1, 2020, Goldman "is not going to take a company public unless there is at least one diverse board candidate, with a focus on women," Solomon said in an interview with CNBC.
Solomon said he believes that diversity among board members is important.
"Diversity on boards is a very, very important issue, and we've been very, very focused on it, and so we're trying to find ways to encourage that," Solomon told CNBC.
He also credits diversity with the success of IPOs.
"Over the last four years, the performance of IPOs where there's been a woman on the board in the U.S. is significantly better than the performance of IPOs where there hasn't been a woman on the board," he said.