Richard Gnodde, the international boss of Goldman Sachs, highlighted the pressing need for the UK government to initiate infrastructure projects to stimulate economic growth. In a comprehensive interview with the BBC, Gnodde emphasized the importance of such projects, especially as the UK government prioritizes economic expansion. He also commented on the current atmosphere of uncertainty surrounding US policies, which he believes is dampening corporate enthusiasm.
Goldman Sachs previously implemented a policy in 2020 that required companies to have at least two diverse board members, including one woman. This policy aimed to drive behavioral change by not advising companies with all-male, all-white boards on flotations. Gnodde stated that the policy "served its purpose," noting the progress made towards diversity in corporate boards. However, a recent ruling by a US federal appeals court against Nasdaq’s similar diversity requirements has led Goldman Sachs to conclude its formal board diversity policy.
"This was a policy from a decade or so ago, I think it has served its purpose." – Richard Gnodde
Despite some companies, including Google and Meta, retracting their diverse hiring programs, Gnodde does not believe that these actions are influenced by the Trump White House. He insists that Goldman Sachs remains committed to advancing diversity.
"I can only speak for ourselves, I don't think that's the case." – Richard Gnodde
"Our ambitions are to continue to take things forward and frankly to go much further than we have been." – Richard Gnodde
Gnodde also reflected on the mood among firms, pointing out that uncertainties over US policies are causing some hesitance in corporate ventures.
"I think right now, the mood is on the margin [is] a little tempered, because people are uncertain about exactly what the policy outcome will be and exactly what the impacts will be." – Richard Gnodde
Chancellor Rachel Reeves has announced UK government plans for infrastructure projects, which include constructing a third runway at Heathrow Airport. Gnodde believes these projects could invigorate economic growth, provided they are executed promptly.
"The long-range projects are very interesting. We need to put them in place but they're going to take a long time." – Richard Gnodde
He suggests exploring infrastructure builds in sectors such as energy and transportation and improving road networks as potential avenues for development.
"Let's find some infrastructure builds that we need to do, whether it's in the energy sector, whether it's in transportation, improving the road network, something on energy transition." – Richard Gnodde
Gnodde reiterated the significance of allowing market dynamics to determine the necessary number of telecommunications and banking institutions necessary for global competitiveness.
"How many telcos do we need? How many banks do we need? I think the market should be able to drive that if we're going to compete on the global stage." – Richard Gnodde
The UK government has made economic growth a central policy objective, but progress has been sluggish. By focusing on strategic infrastructure projects, Gnodde believes that the government can effectively pull levers to boost growth.