SEC Chair Pushes for Scaled-Back Corporate Disclosures

Eyes on the SEC Chair  

 SEC Chair Paul Atkins announced his plans to give companies more flexibility on disclosure requirements.  

Timing of disclosures: A new rule is likely to change the frequency of public reporting. Last week, President Trump called for semiannual public financial reports from companies instead of quarterly reports.  

Types of disclosures: Chair Atkins stated the agency will reevaluate the types of information companies disclose to investors. Atkins has historically critiqued the “overload” of disclosures. Certain disclosures at risk are executive compensation and conflict minerals.  

Consequences: Andrew Jones, a principal researcher at a think tank who works with public and private companies, believes the reduction of public reports will not significantly impact compliance costs because the companies already run the numbers for internal oversight. He warns that, “limiting disclosures also introduces risks related to reduced transparency and heightened market uncertainty.”

What We’re Watching This Week  

 Texas proxy advisor law: Texas Attorney General Ken Paxton has appealed the decision from the US District Court for the Western District of Texas that granted a preliminary injunction to Glass Lewis and ISS for compliance with SB 2337, a law that restricts proxy advisors from considering ESG and DEI in their recommendations. The case will be heard in the US Court of Appeals for the Fifth Circuit.