Rep. Brandon Gill (R-TX) has accused McKinsey & Company of illegal DEI practices, according to Fox News.
Gill chairs the House Oversight Committee’s Task Force on Defending Constitutional Rights and Exposing Institutional Abuses.
The congressman mentioned four McKinsey reports in his letter to Robert Sternfels, the company’s global managing partner: Why Diversity Matters (2015), Delivering Through Diversity (2018), Diversity Wins (2020), and Diversity Matters Even More (2023).
These “highly influential” reports claim that “increased diversity in companies causes a greater likelihood of improved financial performance.”
From Fox News:
“These McKinsey reports have been highly influential, being cited by publicly traded companies, asset managers, proxy advisory firms, and banking institutions, among others, as cause for embedding illegal racial and sex-based targets into hiring, promotion, executive compensation, and asset manager proxy voting policies,” Gill wrote in a letter sent Monday.
“With the support of the previous administration, progressive activists cited McKinsey’s reports to push companies, governments, and stock exchanges to implement rules which forced or incentivized illegal corporate racial or gender-based hiring and disclosure policies.”
BlackRock cited McKinsey’s reports to justify its 30% board diversity target. Even the Nasdaq stock exchange used the reports to receive approval for its Diversity Rule and the Disclosure Rule.
The California Public Employees Retirement System (CalPERS)
Investment Office named two McKinsey reports when explaining the votes “against three board members of P.A.M. Transportation Services, Inc. who had failed to satisfy its board diversity demands.”
Gill also reminded the company that an April 2026 report said those DEI initiatives “cost the U.S. economy roughly $94 billion in 2023 alone.”
It doesn’t help that McKinsey has not released to the public “its underlying datasets used to produce its DEI reports.”
Gill noted that researchers could not recreate McKinsey’s results, leading them to conclude that the company “likely swapped the cause and effect of its DEI conclusions.”
“Although in 2024 McKinsey stated that it ‘stands by its findings,’ other researchers have found zero statistical correlation between a company’s gender and racial diversity and its financial performance,” wrote Gill.
I wonder if Gill’s takedown of American Bar Association (ABA) President Michelle Behnke piqued his interest in McKinsey because she “defended DEI’s importance within the ABA by alluding to the McKinsey DEI reports.”
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