Sex Discrimination Lawsuit Filed Against Goldman Sachs

Earlier this week, three former female employees of Goldman Sachs filed suit against the firm for sex discrimination. The three women allege that Goldman systematically discriminates against female employees by paying them less than males in comparable positions. They also contend that Goldman promotes male employees more frequently than females.

Wall Street firms haven’t had the best luck with public relations lately. Goldman was one of the firms too big to fail and, therefore, bailed out by the federal government in 2008. Not too long ago, Goldman agreed to pay $550 million to settle a civil securities fraud case in connection with the firm’s sale of subprime mortgage securities. Goldman also returned to profitability far more quickly than its competitors, causing many to wonder if it really needed to be bailed out.

According to the recent sex discrimination complaint, women comprise 29% of Goldman’s vice presidents, 17% of its managing directors, and 14% of its partners. In addition to alleging sex discrimination, the complaint highlights the outrageous compensation paid to Wall Street bankers. One of the women admits that she was paid as much as $800,000 when Goldman had a good year. However, she says this was 50% less than what was paid to her male counterparts.

Goldman isn’t the first Wall Street firm to be sued for sex discrimination. Women have made progress on Wall Street, but the firms are still regarded by some as good old boys clubs. The complaint against Goldman claims that male employees exclude women from golf outings, openly visit strip clubs after hours, bring scantily clad female escorts to office parties, and engage in groping when they’ve had too much to drink.

The Goldman case will probably be settled like other Wall Street sex discrimination cases but not before more light is shined on a business that is otherworldly.