Bank of America Drops Diversity Hiring Goals Amid Changing Policies

Bank of America (BofA), the second-largest bank in the United States, has recently removed key diversity hiring initiatives from its corporate policies. The bank has decided to no longer reference its previous diversity hiring targets and has scrapped the requirement for hiring managers to interview a diverse slate of candidates. This shift, disclosed in an annual filing on Tuesday, comes at a time when multiple corporations are re-evaluating their diversity, equity, and inclusion (DEI) commitments amid a shifting political and regulatory landscape.

Executive Orders and Legal Pressures Drive Change

The bank’s decision reflects broader changes occurring in corporate America as businesses navigate new policies under the current administration. A spokesperson for BofA confirmed that the institution continuously assesses its programs to remain compliant with evolving laws and executive orders. “We evaluate and adjust our programs in light of new laws, court decisions, and, more recently, executive orders from the new administration,” the spokesperson stated. Despite these changes, the bank reiterated its commitment to creating equal opportunities for employees, clients, and stakeholders.

Broader Corporate Retreat from DEI Programs

Bank of America is not alone in reassessing diversity policies. In recent weeks, several major corporations have scaled back their DEI initiatives due to mounting legal challenges and political scrutiny. Citigroup, another major U.S. financial institution, has dropped its previous mandate requiring a diverse slate of candidates for job interviews. Similarly, Goldman Sachs abandoned its policy of only taking public those companies with at least two diverse board members. These moves signal a shift away from aggressive DEI mandates that had gained traction in the corporate world over the past decade.

CEO Brian Moynihan Defends Bank’s Diversity Approach

At a conference on Tuesday, BofA CEO Brian Moynihan addressed concerns over the bank’s evolving stance on diversity. He emphasized that while specific hiring mandates may have been lifted, the bank remains committed to maintaining a diverse workforce. “We’ve always been a bank of opportunity … we’ve got a very diverse company in terms of representation from economic strata, all races, and all ethnicities,” Moynihan said.

The bank also highlighted its recent promotions, noting that in 2024, 387 employees were elevated to managing director roles, with over half of them being women and people of color. While this demonstrates BofA’s ongoing commitment to workplace diversity, the decision to abandon specific DEI goals has sparked discussions about the long-term impact of such policy shifts.

The Political and Legal Climate Impacting DEI

The rollback of corporate DEI policies aligns with recent federal actions aimed at curbing diversity-focused hiring initiatives. Since taking office, the administration has taken steps to dismantle DEI programs across both the federal government and private sector. The increased legal scrutiny surrounding affirmative action and corporate diversity efforts has also made companies more cautious. In 2023, the U.S. Supreme Court struck down race-conscious admissions policies in higher education, setting a precedent that could influence corporate hiring practices.

Impact on Workplace Diversity and Inclusion

While BofA and other companies assert their commitment to diversity, critics argue that removing specific hiring goals could slow progress toward workplace inclusion. Advocates for diversity in corporate America emphasize that structured DEI initiatives are essential for ensuring equal opportunities and combating systemic bias. Conversely, opponents of such policies contend that hiring and promotion decisions should be based purely on merit rather than demographic targets.

Financial Industry’s Evolving DEI Strategies

The financial sector has been at the forefront of DEI initiatives in recent years, with banks and investment firms actively working to diversify leadership and hiring pipelines. However, the rollback of formal mandates signals a potential shift in strategy. Instead of enforced quotas, companies may now opt for more flexible approaches to diversity, relying on mentorship programs, internal networking groups, and voluntary inclusion initiatives.

Looking Ahead: The Future of Corporate DEI Policies

As regulatory scrutiny continues and corporate policies evolve, the future of DEI in the financial industry remains uncertain. While some companies may continue prioritizing structured diversity programs, others may take a more passive approach, focusing on broader inclusion without strict mandates. The key challenge will be balancing legal compliance with corporate values, ensuring that diversity efforts remain effective without falling afoul of changing regulations.

Comparison of DEI Policy Changes Among Major Banks

The shift in corporate diversity policies is a developing story, and future legal and political decisions will likely shape how companies navigate DEI efforts in the coming years. For now, Bank of America’s decision underscores the broader transformation occurring across industries as businesses adjust to the new regulatory and economic environment.