A settlement has been reached in a class-action lawsuit that alleged Goldman Sachs Group Inc. discriminated against thousands of female employees, Financial Advisor reports.
Goldman Sachs agreed to pay $215 million to about 2,800 women who accused the New York-based bank of systematically paying them less than their male colleagues. The lawsuit also claimed that Goldman Sachs hindered the career advancement of women and employed a performance review process that favored men through promotions and higher pay.
The case originated with a woman who joined Goldman Sachs in 1997, filed a discrimination complaint with the US Equal Employment Commission eight years later, and then filed a lawsuit in 2010. She was later joined in the lawsuit by other women who worked for the company as an associate or vice president in the U.S. in the investment banking, investment management or securities divisions.
Along with the payment, Goldman Sachs agreed to work with an independent expert to perform more analysis on its performance evaluation processes, as well as its process for promoting personnel from vice president to managing director. In addition, an independent expert will conduct pay equity studies and the company will investigate and address gender pay gaps.
Goldman Sachs global head of human capital management Jacqueline Arthur released a statement that read in part, “Goldman Sachs is proud of its long record of promoting and advancing women and remains committed to ensuring a diverse and inclusive workplace for all our people. After more than a decade of vigorous litigation, both parties have agreed to resolve this matter.”
The lawsuit had been scheduled to go to trial next month.
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