The Securities and Exchange Commission prepares a proposal to eliminate the quarterly reporting requirement for public companies, according to people familiar with the matter. The regulator would instead allow companies to share earnings results just twice annually. This move responds to long-standing criticism that quarterly reporting pressures executives into short-term decision making at the expense of long-term strategy.

The SEC discussions with major exchange officials signal the proposal has advanced significantly. Public companies currently face strict deadlines to report financial results every 90 days, a requirement dating back decades. Supporters of biannual reporting argue it would reduce compliance costs and allow management to focus more on sustainable business practices rather than hitting quarterly targets.

Regulators could publish the proposal as soon as next month, marking a potential seismic shift in corporate disclosure requirements. The change would represent one of the most significant modifications to financial reporting regulations in decades. Corporate executives and investors alike would need to adapt to this new rhythm of financial information if the proposal becomes final.