Goldman Sachs Group Inc. is facing scrutiny from investors who are dissatisfied with the bank’s failure to adequately address employee harassment and discrimination concerns, the Financial Times reported.
The Nathan Cummings Foundation submitted its second shareholder proposal, requesting that the bank release a public report on its use of mandatory arbitration in employee harassment and discrimination cases, the FT reported.
Activists say the current evaluation process grants an unfair advantage to the company. In arbitration, parties settle the dispute with private mediators, instead of going to court.
At Goldman’s annual meeting in April, 49% of investors, including BlackRock, Fidelity and Pimco voted in favor of the foundation’s initial proposal. In June, Goldman agreed to review its arbitration practices, but hasn’t yet disclosed its progress over the past six months.
Goldman declined to comment to the FT, pointing only to its statement in June.
This article was provided by Bloomberg News.