U.S. Treasury Secretary Scott Bessent voiced support for President Donald Trump’s proposal to move public company earnings disclosures from a quarterly to semiannual schedule, describing the shift as positive for investors.
The President raised the idea in a Truth Social post on Monday, asserting that reducing the reporting frequency would let executives focus on longer-term objectives rather than short-term financial targets.
Bessent stated in an interview that the U.S.’ public markets are atrophying, and this measure could restore it and cut costs for public companies without harming investors.
This initiative surfaces as more companies opt to stay private, often to avoid the heightened scrutiny and compliance demands tied to quarterly financial reporting. The number of companies listed on U.S. exchanges has dropped from over 7,000 in 1996 to below 4,000 by 2020.
Trump also argued that revising reporting requirements would better align the U.S. with international practices already operating on semiannual schedules, such as Hong Kong, the U.K., and much of the European Union.
However, some investor groups have highlighted that more frequent earnings reports help ensure transparency and protect shareholders’ interests. The Council of Institutional Investors (CII), which represents large pension funds, has expressed concerns that reducing disclosure frequency might not adequately safeguard investors.
Foreign companies listing in the U.S. as “foreign private issuers”—such as Arm and Spotify—are already exempt from quarterly reporting, although several choose to provide such updates voluntarily. CII has previously noted that these exemptions could “undercut” robust corporate governance standards.
European exchanges have seen prominent firms opt for U.S. listings in pursuit of higher valuations and lighter regulatory burdens. A potential move away from quarterly disclosures stands to make the U.S. market even more appealing for companies considering cross-border listings, as it would further reduce compliance costs.
