What: Shareholders at Goldman Sachs and Levi's decisively reject anti-DEI proposals, with less than 2% support, signaling strong corporate resistance to diversity rollbacks.

Why it is important: The overwhelming shareholder rejection demonstrates growing corporate resilience against anti-DEI pressure, contrasting with recent industry retreats and highlighting the evolving dynamics of social responsibility in retail.

The recent shareholder votes at Goldman Sachs and Levi Strauss Corp. mark a significant moment in corporate diversity initiatives, with both companies' investors overwhelmingly rejecting proposals to dismantle DEI practices. At Goldman Sachs, less than 2% of shares supported eliminating DEI goals from executive pay initiatives, whilst Levi's shareholders showed even stronger opposition, with less than 1% backing the proposal to end DEI programmes. These results emerge amid an increase in anti-ESG proposals this proxy season, though support for such measures remains notably low. The National Legal and Policy Center's proposal to Goldman Sachs and the National Center for Public Policy Research's submission to Levi's both argued that DEI policies could expose companies to litigation risks following recent Supreme Court decisions on race-conscious admissions. However, management at both companies strongly opposed these proposals, with Levi's emphasising the business case for diversity and its relevance to their global consumer base. Similar proposals have also failed at other major corporations, including Apple, Costco, John Deere, and Disney, suggesting a broader trend of corporate resistance to anti-DEI pressure.

IADS Notes: The overwhelming rejection of anti-DEI proposals at Goldman Sachs and Levi's in April 2025 represents a significant milestone in retail's evolving approach to diversity initiatives. This development follows a transformative period that began in November 2024, when Walmart pioneered a strategic pivot by maintaining inclusive practices while modifying terminology, leading to its strongest market performance since 1998. The industry subsequently witnessed divergent approaches: while Target faced a $10 billion valuation loss and 9% traffic decline in February 2025, luxury brands and specialty retailers like Ulta Beauty maintained firm DEI commitments. The emergence of the FAIR framework (Fairness, Access, Inclusion, Representation) in January 2025 offered retailers a new path forward, as evidenced by Victoria's Secret's rebranding to "inclusion and belonging." These varied responses highlight the complex balance retailers must strike between shareholder interests, consumer expectations, and social responsibility, particularly as BIPOC-owned brands and suppliers navigate changing market access dynamics.

More anti-DEI shareholder proposals fail