Abolishing the rule would "allow greater flexibility & save money" for businesses, Mr. Trump tweeted. Even SEC Chairman Jay Clayton, a Trump appointee who has made boosting the number of initial public offerings one of his top priorities, hasn't floated the idea of scaling back reporting requirements.
The SEC enjoys some level of distance from the White House because it's an independent agency.
According to Mr Trump, top business leaders from around the world claimed that removing the administrative burden of such regular reporting would boost the U.S. economy and create jobs.
WASHINGTON (AP) - President Donald Trump is calling on federal regulators to consider scrapping the requirement for public companies to report quarterly results, after business executives told him twice-yearly reports would make better economic sense.
"The president has highlighted a key consideration for American companies and, importantly, American investors and their families - encouraging long-term investment in our country", Clayton said.
The European Commission, among others, only requires semi-annual financial reports of companies there, although major European companies whose stock is traded in both the United States and Europe will report on a quarterly basis in order to comply with SEC regulations.
The U.S. enacted quarterly reporting in. "One of the inherent issues with quarterly reporting is that it does tend to drive management to make decisions geared toward short-term metrics, which is not always in everyone's best interest". "In the end, all companies have to balance short-term and long-term performance", Nooyi said. "So we're looking at that very, very seriously".
But he said energy companies would probably still report some oil and gas well data every three months to please investors.
Businesses have long complained that the reports require company executives to focus too much on the short term.
Tesla Inc (TSLA.O) Chief Executive Elon Musk stunned investors last week with a plan to take the electric carmaker private, a move he says would benefit shareholders by removing short-term pressures. A lot can change in a three-to six-month period, especially with all the disruption in technology.
But scrapping quarterly reporting is not now on the SEC's near-term agenda, according to public records. "Investors need timely, accurate financial information to make informed investment decisions". Some high-profile executives, including JPMorgan Chase chief executive Jamie Dimon, have recommended that companies stop providing Wall Street analysts guidance on what to expect from quarterly profits, for example.
Doing away with quarterly reports would help corporations save money.
The discussion with Pepsi's CEO wasn't the first time White House officials have heard from the business community about quarterly reporting requirements.