SEC Chair Moves to Propose Semiannual Earnings Reporting Option
Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), announced plans to propose a rule change that would allow publicly traded companies to report earnings on a semiannual basis instead of the current quarterly schedule. This initiative follows President Donald Trump’s recent advocacy for less frequent earnings disclosures. Speaking on CNBC’s Squawk Box, Atkins expressed support for revisiting the existing reporting framework, stating, “In principle, I think to propose change in what our rules are now, I think would be a good way forward, and then we’ll consider that and move forward after that.” If the SEC approves the rule change, companies would have the discretion to maintain quarterly reporting or opt for semiannual disclosures, leaving the market to determine the appropriate reporting cadence. Atkins emphasized the importance of shareholder choice, saying, “For the sake of shareholders and public companies, the market can decide what the proper cadence is.” Currently, U.S. regulations require quarterly earnings reports, although companies are not obligated to provide earnings forecasts. President Trump argued earlier this week that moving to a semiannual reporting schedule would reduce costs and enable management to focus more on running their businesses effectively. The SEC’s voting structure, with a 3-1 Republican majority and one vacancy, makes a rule change feasible through a majority vote. However, the proposal has sparked debate. Critics caution that less frequent reporting may undermine transparency and disadvantage retail investors who lack the resources of institutional investors. Proponents argue that semiannual reporting encourages a longer-term strategic focus for companies. Atkins highlighted that semiannual reporting is already practiced by foreign private issuers in U.S. markets. He referenced Norway’s sovereign wealth fund and the Long-Term Stock Exchange platform as advocates for this approach, which they believe promotes long-term business planning over short-term earnings pressure.“You have to realize that right now, semi-annual reporting is no stranger to our markets, foreign private issuers do it right now,” Atkins said. “There’s been a lot of discussion of the past few years about how this quarterly reporting kind of emphasizes a short term type of thinking.”
