Wall Street giant Morgan Stanley eases diversity emphasis in annual report

MORGAN Stanley toned down its emphasis on diversity in its latest annual report published on Friday (Feb 22), signaling a recalibration as businesses adapt to a changing reality under President Donald Trump’s administration.

The report omitted the bank’s past statement that “a diverse and inclusive workforce is important to Morgan Stanley’s continued success.”

Instead, the report now says: “meritocracy is at the heart of Morgan Stanley’s talent development” and “a workforce that represents the societies in which we live and work, and our global client base, is integral to Morgan Stanley’s continued success.”

Several corporate giants have been softening their diversity commitments amid a push by Trump to dismantle diversity, equity and inclusion (DEI) programs in the federal government and the private sector.

Citigroup has said it will no longer require a diverse slate of candidates for job interviews. Goldman Sachs also cancelled a four-year-old policy of exclusively taking public companies with at least two diverse board members.

Diversity has been a longstanding challenge on Wall Street. Morgan Stanley also drew scrutiny previously for fielding an all-white, all-male slate of candidates to succeed former chief executive officer James Gorman.

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The bank, however, has several women in top roles, including chief financial officer Sharon Yeshaya. Citing an employee survey, Morgan Stanley said that around 40 per cent of its global workforce and 29 per cent of its officers – which include roles such as managing directors, executive directors and vice presidents – are women.

In the US, 35 per cent of its workforce and 28 per cent of its officers come from ethnically diverse backgrounds, the bank said.

“We strive to make Morgan Stanley a diverse and inclusive workplace,” the bank said in the report. A spokesperson declined to comment further. REUTERS