Donald Trump wants to change how often companies open their books. His plan is to cut back from quarterly earnings to twice a year. He argues this will save money and allow executives to focus on long-term growth instead of short-term market reactions.
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But less reporting means less transparency. Investors rely on quarterly updates to spot red flags, hold leaders accountable, and measure performance. Without them, big institutions may be fine, they have research teams, but retail investors could be left in the dark.
ExxonMobil Gains Power in Shareholder Votes
ExxonMobil (XOM) just got a major boost from the SEC. The company can now use a voting system where shareholders can automatically side with management if they choose. That gives Exxon a built-in advantage when activist investors push proposals the board doesn’t like.
It’s a first step that could spread quickly. If more companies adopt this approach, executives will have stronger defenses against shareholder activism. This means boards gain security, but ordinary investors lose one of their most effective levers to influence company direction.
SEC Weakens Investor Remedies
The SEC is also exploring rules that would push shareholder disputes into private arbitration instead of public courtrooms. For companies, this means fewer public battles and less risk of reputational damage.
For investors, it’s the opposite. Court cases bring exposure and accountability, while arbitration keeps everything behind closed doors. Without public scrutiny, executives may have more room to sidestep challenges over pay, governance, or strategy.
CEOs Tighten Their Grip on Power
Taken together, these moves tilt the balance sharply. Executives will be able to plan long term without the constant pressure of quarterly earnings or activist demands. Boards will have stronger tools to fend off dissent.
Investors, on the other hand, are losing visibility and influence. With fewer reports, fewer court fights, and more board-friendly voting rules, their ability to shape the companies they own is shrinking fast.
Investors tracking the political influence behind these shifts can also use the Trump News & Truth Social Market Impact Dashboard, which measures how Trump’s statements and policies move specific stocks and sectors in real time.
