President Trump is once again showing business leaders across America that he understands the engine of our economy is fueled not by bureaucrats, but by entrepreneurs, workers, and investors. His latest move, directing the Securities and Exchange Commission (SEC) to consider easing reporting requirements, is a welcome step toward restoring common sense in Washington and unleashing American prosperity.

For decades, American businesses have evolved into a short-term mindset as executive compensation became linked to short term results. Quarterly reporting may sound like a transparency measure, but in reality, it traps managers in a cycle of meeting or ideally beating Wall Street’s expectations every 90 days instead of pursuing strategies that maximize shareholder value over five, ten, or twenty years. 

By freeing executives from this treadmill, we give them the space to innovate, to invest, and to build enduring growth that benefits investors and employees alike. Creating alignment with shareholders whose holding period can be very long.

Semi-annual reporting is already the norm for mutual funds and ETFs, which together represent trillions of dollars of retirement savings. Large hedge funds only must report annually. No one questions the soundness of those investments........

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