A warning from the vampire squid...
Goldman Sachs has announced it will no longer take public companies without any diverse board members.
Chief executive David Solomon outlined the plans on US news channel CNBC. Starting in June, US and European firms will need to have at least one “diverse” board member, and at least two from June 2021, before the bank will help them to float.
The bank has not officially defined diverse, but Solomon said the focus is on women.
Rather than turn away clients who don’t meet the diversity requirement, the bank will help them improve, and may even introduce potential candidates to the senior management.
The bank says that greater diversity at C-suite levels leads to better performance.
According to Goldman Sachs’ own data on firms that go public, the share price of companies with at least one "diverse" board member jumped 44 per cent in the following year, compared to 13 per cent of companies with no none.
Does success destroy relationships?
Personal success does indeed often come at a cost to personal lives, a survey suggests.
Legal firm Howard Kennedy surveyed 505 “high-earners” from a spectrum of UK businesses on how difficulties in their personal relationship affected their performance at work. Nearly 70 per cent of respondents admitted they had experienced serious relationship problems at some point in their career.
For 36 per cent of them, these problems remain unresolved. Many highlighted a link between their job and their relationship breakdown, citing high-pressure, work-related stress and working long hours as reasons.
These issues also have a knock on effect on their performance at work, with 71 per cent believing it has had a “serious impact” on their job, leaving them feeling more distracted and less productive.
“HR teams already put together comprehensive programmes for their senior staff, but equipping them to manage personal relationships seems to be a blind spot,” says Jane Amphlett, head of employment and partner at Howard Kennedy.
“By demonstrating understanding, flexibility and promoting employee assistance programmes, they will benefit from improved performance.”
Better communication, improving work-life balance and prioritising the relationship over career were some of the steps taken by respondents to fix the problem.
(Source: Howard Kennedy)
Supermarkets shake up staff
Up to 3,000 management roles will be cut at Morrisons as part of a restructure. However the supermarket intends to create another 7,000 hourly-paid, customer-facing roles across 500 stores.
Axed managers who still wish to remain at the chain will be offered these frontline roles, which pay £9 an hour.
Morrisons is the latest of the big four to shake up its staffing structure, with Sainsbury’s also announcing hundreds of management roles will go as it further integrates 2016 acquisition Argos into the business.
The BBC’s consumer affairs correspondent Colletta Smith writes that the big four are hoping to pass cost savings onto consumers by cutting outgoings on staff, in a bid to beat competition from discount chains Aldi and Lidl.
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