Morgan Stanley CEO James Gorman thinks we should rethink the practice of quarterly earnings reports for U.S. companies. Gorman says that the once-per-quarter filings, legally required by the Securities and Exchange Commission, are an “asinine” practice that distracts from long-term planning.
He’s not alone. Other Wall Street executives have criticized the practice. The law firm Wachtell Lipton recently said the schedule encourages short-term thinking and even Hillary Clinton has hinted at the possibility of reforms that would let executives and shareholders “focus on the next decade rather than just the next day,” according to the Wall Street Journal.