American firms should no longer have to report on a quarterly basis, USA president Donald Trump has said.
The proposal would mean rethinking a cornerstone of the country's accounting system since the Great Depression: Every three months, publicly traded companies must offer a detailed financial picture - including their revenue and profits - to shareholders.
Nooyi issued a statement on Friday about the conversation with the president, saying that many market participants "have been discussing how to better orient corporations to have a more long-term view. In the end, all companies have to balance short-term and long-term performance".
He said one executive suggested the change as a way to boost business, although he did not name the individual or the company....
There are also tremendous expenses associated with preparing quarterly and annual reports. One provision of the bill includes a requirement that the SEC review the quarterly reporting requirement.
In a statement on Friday afternoon, SEC Chairman Jay Clayton said Trump has raised a "key consideration" for USA companies and that the agency's 'Division of Corporation Finance continues to study public company reporting requirements, including the frequency of reporting'.
The SEC is an independent agency, and the president can not force it to implement rule changes.
Under Clayton, a Trump appointee, the SEC has taken steps to relax rules for issuers, including allowing firms going public to file information confidentially, and is now discussing easing other compliance rules.
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It's a move that would benefit businesses and workers, the president said.
The discussion with Pepsi's CEO wasn't the first time White House officials have heard from the business community about quarterly reporting requirements.
Trump held a dinner for business executives on Aug 8, two days after Nooyi announced her departure, at his golf club in Bedminster, New Jersey.
The Trump administration has said it would like to reduce red tape it blames for a decline in public listings.
Trump tweeted, "I have asked the SEC to study!", but it officially can only be a request, not an order. In 1998, there were around 7,500 listed companies in the United States, compared with around 4,300 in 2017, according to the World Bank. The most recent data from the United Kingdom shows that only 57 of the companies in the benchmark FTSE 100 index were still issuing quarterly reports as of September 2017, according to the Investment Association.
Last fall it laid out changes to capital market rules in a U.S. Treasury report, but did not advocate scrapping quarterly reporting. But quarterly reports on results are distinct from the so-called earnings guidance that company executives provide as a forecast.
He would need to draft a proposed rule-change which would then be put to an industry consultation during which investors, companies, exchanges, pension funds and public interest groups would likely bombard the SEC with information.