Will Quarterly Reporting Become Biannual?

In what could be one of the biggest changes to business oversight in a half century, the SEC is poised to extend earnings reporting to a six-month cycle. And the question is obvious: What exactly would that mean?

For the last 50 years, firms have been reporting earnings quarterly, or every three months. But the proposal, expected to be made public soon, would reduce that requirement to just twice annually. The potential change hasn’t received widespread attention, but experts are calling it hugely significant and saying it will affect the way firms strategize, plan, and hire. Supporters say it would lessen the pressure on short-term results for firms, along with their regulatory burden, among other benefits. Critics argue that reduced transparency will make it harder for investors to judge performance.

If the proposal passes—the SEC must hold an official vote following a public comment period—corporate boards will be tasked with balancing the interests of firms and investors in setting disclosure, strategy, and performance measurement with decreased regulatory oversight. We asked five of our top board services and governance experts for their predictions on the impact of a longer reporting cycle.

Anthony Goodman, leader, North American Board Effectiveness

The most significant and direct impact of the change will be on the audit committee, says Goodman. That’s in part because the audit committee on most boards oversees not just financial reporting, but also risk—which has been growing exponentially in recent years under the pressure of geopolitical tension, supply-chain disruption, AI, and more. “Audit committees have been under pressure to manage risk,” he says, “and this change would free up directors to focus more on those activities.”

Claudia Pici Morris, North American leader, Board and CEO Succession

Moving to a six-month reporting schedule could slow the torrid pace of CEO turnover, says Pici Morris. Or, at least, that’s what CEOs are hoping for. In January, 209 CEOs left their firms, the third-largest annual January total (trailing only 2025 and 2020) in two decades. Whereas boards historically have given CEOs more time to effect a turnaround or transformation, now they are taking fewer risks with leaders and moving faster, says Pici Morris. Extending the time between earning reports could potentially extend the time boards allow leaders to execute their visions. “Now instead of two quarters, maybe they’ll get at least 12 months,” Pici Morris says.

Alan Guarino, vice chairman, Board and CEO Services

Guarino expects to see an increase in IPOs if the proposal passes. “Companies have been staying private more often, and longer, because of the additional regulatory scrutiny and costs associated with being public,” he says. To be sure, the number of public companies in the US is about half of what it was in the 1990s. IPOs increased more than 40% last year, to more than 200 companies, and Guarino sees that trend continuing in tandem with reduced regulatory requirements.

Kim Van Der Zon, vice chairman, Global Board and CEO Services

Institutional investors and large funds already have an advantage over retail investors, says Van Der Zon, and reduced public financial disclosure will increase it. She notes that institutional investors get access that retailers do not—to exclusive deals like IPOs and private capital raises, as well as to management. Retail investors rely on public information, and in the absence of company-provided data, Van Der Zon worries that these shareholders will end up having to interpret signals from media and analysts that may be less than accurate.

Dennis Carey, co-leader, Board and CEO Services

Even if the SEC acts, Carey points out, firms can’t move to biannual reporting without approval from key investors and other stakeholders. And investors can ask for concessions from the firm to secure their agreement, such as the issuing of earnings or other financial guidance to fill in the gaps between reports, he says. To be sure, since the pandemic, the number of firms issuing financial guidance has been on a steady decline, with only about 20% of S&P 500 currently doing so, versus more than 50% in the early 2000s. Carey expects an uptick in guidance and other financial-trends disclosures that could actually increase rather than decrease transparency. “Guidance is just as good, if not better, for investors, because it takes a longer-term view,” he says.

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