President Donald Trump on Friday advocated for a possible end to the long-held quarterly earnings reports for publicly traded companies, saying it would boost business and in turn help create jobs.
In a morning tweet, the president said he had spoken to "business leaders" for their ideas on growth and they believed filing earnings reports every three months was one obstacle for growth. One idea would be to report every six months.
The Securities and Exchange Commission said it continues to study issues affecting long-term decision make for companies. In a statement, SEC Chairman Jay Clayton said Trump had "highlighted a key consideration."
"The SEC's Division of Corporation Finance continues to study public company reporting requirements, including the frequency of reporting," Clayton said. "As always, the SEC welcomes input from companies, investors, and other market participants as our staff considers these important matters."
Addressing the issue later in the morning with reporters, Trump said, "I'd like to see twice" a year for reporting.
He said he spoke with the retiring CEO of PepsiCo — an apparent reference to Indra Nooyi — who had mentioned biannual reporting as a way to, in Trump's words, "make it even better."
"And I thought of it and it made sense to me, because you know we are not thinking far enough out," Trump said. "We've been accused of that for a long time, this country. So we're looking at that very, very seriously. We're looking at twice a year instead of four times a year."
Nooyi said she spoke in the larger context of allowing corporations, including those on the Business Roundtable in which she takes part, to be able to take a longer view of operations.
"Most agree that a short-term only view can inhibit long-term strategy, and thus long-term investment and value creation," Nooyi said in a statement. "My comments were made in that broader context, and included a suggestion to explore the harmonization of the European system and the U.S. system of financial reporting. In the end, all companies have to balance short-term and long-term performance."
The European Commission in 2014 dropped a requirement for companies to report on a quarterly basis, a model the U.S. could someday follow.