Citigroup’s DEI cuts under Trump is raising alarms for banks and Wall Street.
DEI is part of our DNA,” Citigroup Inc.’s head of talent said in an interview just two months ago, calling it not only a priority, but “a business imperative.”
The bank’s U-turn came fast.
On Thursday, Chief Executive Officer Jane Fraser announced she was ending the diversity, equity and inclusion goals she set out less than three years ago in what was one of the industry’s most ambitious and concrete commitments, citing an executive order by President Donald Trump that banned “illegal DEI” policies by federal contractors like her bank.
It is also a sharp change from five years ago, when George Floyd’s murder prompted executives across the industry, including Fraser, to push loudly on behalf of underrepresented employees in their firms and among clients. Trump’s legal threat could now undo Wall Street’s slim progress — and come as a relief for executives who by many measures were failing to show meaningful results anyway.
Piecemeal retreats were already starting to happen, and it’s now likely that Citigroup’s sweeping announcement on the back of Trump’s order will become just one prominent move in a sea of hasty DEI cut-and-runs in the sector.
Companies in other industries, including Accenture Plc and PepsiCo Inc., have dropped representation targets and pulled back from DEI efforts after Trump revoked a longstanding order directing federal contractors to take affirmative measures to ensure equal opportunities for women and underrepresented groups. The president also told them to affirm that they don’t engage in “illegal” DEI efforts.
Bank of America has aspirational goals it hasn’t publicly broken out that it’s likely to roll back, according to a person familiar with the matter. At rival Wells Fargo & Co., a page about DEI was removed from its website in recent days.
At its very top, the bank, which never published updates on progress toward the now-canceled targets set in 2022, is the least gender-diverse compared to major US peers. Women make up just 17% of its 18-person executive management team, compared to 47% at rival JPMorgan Chase & Co.
Source: FORTUNE