"That's actually one of the first things that comes up. What would an investor relations strategy look like? How do you maintain transparency? How do you stay in front of your investor base, telling your story, getting out in front of them, and continuing enthusiasm around your stock?"
"Yes, some companies may save money. They may save time. But you're going to have to rethink a lot of things. The market participants, the investors, are going to demand information in some form or fashion."
"Removing that rhythm creates a governance gap, likely requiring informal quarterly updates to maintain oversight and communication with management and auditors."
The SEC is considering a proposal to allow U.S. public companies to report financial results semiannually instead of quarterly, making quarterly filings optional. This change could significantly alter how companies manage investor relations and maintain transparency. J. Eric Johnson noted that while some companies might save time and money, they would need to rethink their communication strategies. Concerns also arise regarding Regulation FD and the impact on board oversight, as the traditional quarterly review rhythm would be disrupted, potentially creating governance gaps.
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