President Donald Trump said companies should not be forced to deliver earnings reports on a quarterly basis, saying he preferred a six-month schedule he cast as saving businesses time and money.
“Subject to SEC Approval, Companies and Corporations should no longer be forced to “Report” on a quarterly basis (Quarterly Reporting!), but rather to Report on a ‘Six (6) Month Basis,'” Trump said in a social-media post on Monday, referencing the Securities and Exchange Commission. “This will save money, and allow managers to focus on properly running their companies.”
Trump compared the U.S. reporting process to China, suggesting that Beijing had a system in place that was more efficient and cost-effective for businesses in that country.
The SEC didn’t immediately return a request for comment.
Trump in his first White House term also floated having companies change their quarterly reporting to a six-month schedule.
The agency in 2018 asked the public for ideas on how to strike a balance between reducing costs for publicly-traded companies and ensuring investors receive adequate information. The potential change to quarterly reporting requirements was never finalized.
SEC Chairman Paul Atkins hasn’t said whether he plans to extend companies’ reporting periods, but he has been a frequent critic of disclosures that many companies view as overly burdensome without providing significant benefit to shareholders.
The agency included a possible proposal on its recently-issued regulatory agenda to “rationalize disclosure practices” — a potentially wide-ranging topic that could eventually encompass a range of measures.
