– Reuters reported that Berkshire Hathaway has joined a growing list of US companies to publicly change their approach to discussing their commitment to diversity, equity and inclusion (DEI). Berkshire’s annual report includes a section describing how the organization’s 189 operating businesses depend on human capital and resources and that each establishes practices to attract and retain employees.
Last year’s report said the businesses achieved this in part through hiring practices ‘intended to identify qualified candidates and promote diversity and inclusion in the workforce.’ This year’s report omitted the discussion of diversity and inclusion, ending that passage after ‘candidates.’
Warren Buffett’s assistant did not immediately respond to a Reuters request for comment.
Berkshire has long said its decentralized structure allows individual operating businesses to make their own day-to-day operating decisions without interference from the top. Other major US companies have curbed their public support or initiatives for DEI in the workplace, which have been attacked by many conservatives including President Donald Trump.
– According to The Wall Street Journal, Robinhood Markets said the SEC has closed its investigation into the firm’s crypto unit and does not intend to pursue enforcement action, in the latest indication of the Trump administration’s support for the crypto-currency space.
The online brokerage said the SEC’s enforcement division advised the crypto unit, called Robinhood Crypto, of its decision. ‘Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities,’ Robinhood chief legal officer Dan Gallagher said Monday.
– CNBC reported that Apple shareholders rejected a proposal that it abolish its DEI program. The proposal, submitted by the National Center for Public Policy Research, was voted down at Apple’s AGM. The resolution requested that Apple get rid of its program, policies, department and goals, contending that diversity programs may discriminate and that compliance risks threaten the company’s bottom line.
Apple’s board had opposed the measure, saying it’s already compliant with employment laws and that the proposal inappropriately seeks to micromanage the company’s programs.
‘Our strength has always come from hiring the very best people and then providing a culture of collaboration, one where people with diverse backgrounds and perspectives come together to innovate and create something magical for our users,’ Apple CEO Tim Cook said.
– However, Cook said the company may have to change its diversity practices as the US legal landscape shifts, the BBC reported. ‘As the legal landscape around this issue evolves, we may need to make some changes to comply, but our north star of dignity and respect for everyone and our work to that end will never waver,’ Cook said during a question-and-answer session at the AGM.
He noted that Apple did not use hiring quotas while saying the company’s strength came from a culture where ‘people with diverse backgrounds and perspectives come together.’
‘We’ll continue to work together to create a culture of belonging where everyone can do their best work,’ he added, saying the company would remain ‘committed to the values that have always made us who we are.’
– Reuters reported that Unilever ousted CEO Hein Schumacher and replaced him with CFO Fernando Fernandez, who will focus on speeding up the execution of the consumer group’s turnaround strategy. In an email to associates, Schumacher defended his approach and record as CEO and said he regretted leaving the company earlier than expected. ‘The board is eager to step up the pace of our strategy execution and realize swift value creation underscored by a change in leadership,’ he said in the email, which was shared with Reuters.
– Reuters reported that Goldman Sachs added its president and COO John Waldron to its board. Waldron joins CEO David Solomon as the second member of the firm’s management committee to have a seat on the board. ‘It does appear that firmer succession planning is underway,’ said Stephen Biggar, a banking analyst at Argus Research.
Waldron, who has been president and COO since October 2018, oversees the leaders of the bank’s three main divisions. He previously served as co-head of investment banking, a role he assumed in 2014 after joining Goldman in 2000.
The bank also announced it added Accenture’s CFO KC McClure as an independent director on the board.
– According to Reuters, Goldman Sachs has dropped an entire section dedicated to ‘diversity and inclusion’ from its annual filing. ‘We have made certain adjustments to reflect developments in the law in the US,’ Solomon said in a statement. The bank’s previous five-year ‘aspirational hiring and representation goals’ are set to expire this year, the report stated.
Earlier this month, the bank ended a four-year-old diversity policy that called for it to advise companies on IPOs only if they had two diverse board members.
‘We strongly believe that merit and diversity are not mutually exclusive. Our people are a powerful example of that and that’s why we will continue to focus on the importance of attracting and retaining diverse, exceptional talent,’ Solomon added.
Trump on Wednesday also asked Apple to scrap its DEI policies after the company’s shareholders voted to keep them.
– The WSJ reported that Trump administration officials are moving to drop a Consumer Financial Protection Bureau (CFPB) lawsuit that accused Capital One of misleading customers over the interest rates on their savings accounts. A notice of voluntary dismissal was filed in federal court in Virginia, where the CFPB brought its case in January. Mark Paoletta, chief legal officer for the bureau, also moved to dismiss other enforcement actions, including an agency lawsuit against Rocket Homes.
The future of the CFPB and its pending actions against banks have been in doubt since its acting director instituted a work freeze, laid off employees and closed the headquarters in Washington, DC.
Trump’s nominee to lead the CFPB, Jonathan McKernan, maintained Thursday that he would ensure the agency continues to enforce consumer financial-protection laws. Democrats questioned his statements in light of the legal dismissals.
‘We welcome the CFPB’s decision to dismiss this action, which we strongly disputed,’ a Capital One spokesperson said.
A spokesperson for Rocket Homes called the CFPB’s case a ‘misrepresentation of the facts’ in a statement, adding: ‘We are proud to put this matter behind us.’
Ben Maiden
Ben Maiden is the editor-at-large of Governance Intelligence, an IR Media publication, having joined the company in December 2016. He is based in New York. Ben was previously managing editor of Compliance Reporter, covering regulatory and compliance...
