Goldman Sachs CEO Solomon considers changes in reporting cycles

David Solomon, the CEO of Goldman Sachs, expressed uncertainty at an event hosted by Georgetown University's Psaros Center for Financial Markets and Policy about the future frequency of business reports by U.S. publicly traded companies, including his own. Solomon admitted that he had not yet settled on a firm position. "It's not a clear matter," he remarked, adding that it was only recently he realized this issue might be on his agenda. President Trump had recently suggested that companies should report their financial results every six months instead of the current quarterly system. This proposal has so far met with a muted response from the CEOs of major banks. Current rules require publicly traded companies to report quarterly, with forecasts provided on a voluntary basis. Changes to this practice could be decided by a majority at the U.S. Securities and Exchange Commission, where Republicans currently hold the majority. In the discussion, Solomon explained that a longer reporting cycle would allow companies to focus more intensively on long-term investment strategies. However, counterarguments include that this would reduce transparency for investors. In contrast, the CEO of JPMorgan Chase, Jamie Dimon, had already criticized the short-term nature of quarterly earnings releases as harmful to the economy in 2018, which he elaborated on in a newspaper article co-authored with Warren Buffett. On a personal level, Solomon expressed a clear preference: "I would prefer to conduct only two earnings presentations annually instead of four.