The settlement, which covers about 2,887 current and former female vice presidents and associates, prevents a trial planned to start in June this year, and ends one of the high-profile lawsuits against unequal treatment of women
Goldman Sachs to pay $215m in settlement. (Credit: Akshay Sadarangani on Unsplash)
US-based investment banking company Goldman Sachs has agreed to pay $215m to resolve a lawsuit that claims extensive bias against women with respect to pay and promotions.
The settlement prevents a trial, scheduled to start in June this year, ending one of the high-profile lawsuits against unequal treatment of women on Wall Street, reported Reuters.
It covers about 2,887 current and former female vice presidents and associates who worked in investment banking, investment management and securities units of the company.
The average payout could be about $47,000 after deducting legal fees and costs, and court approval is required.
US law firm Lieff Cabraser Heimann & Bernstein represented the plaintiffs, in this case.
Lieff Cabraser Heimann & Bernstein partner Anne Shaver said: “Everybody is feeling very happy and proud of this settlement – we worked so extremely hard to get here. It will inspire other people to step up.”
Goldman Sachs human resources head Jacqueline Arthur said: “Goldman Sachs is proud of its long record of promoting and advancing women and remains committed to ensuring a diverse and inclusive workplace.”
According to Reuters, Wall Street firms including Bank of America, Citigroup and Morgan Stanley have previously settled gender discrimination lawsuits.
In 2010, Goldman faced a lawsuit, when former executives Cristina Chen-Oster and Shanna Orlich complained about the bank’s gender-based inequalities in pay and promotions.
Orlich, in a statement, said: “This settlement will help the women I had in mind when I filed the case.”
As part of the settlement, Goldman is set to hire independent experts to analyse its gender pay gaps and performance evaluation processes.
In 2020, the bank said that it will ensure that 40% of vice presidents will be women, and 29% of its current partners and managing directors are women.
Last month, Goldman Sachs agreed to pay a $15m penalty to settle charges claiming that the bank has failed to make proper disclosures and communicate fairly to swap customers.
The US Commodity Futures Trading Commission (CFTC) filed the charges and imposed the penalty for violation of its Business Conduct Standards related to swapping dealers.