Indra K. Nooyi, the outgoing CEO of PepsiCo Inc. (PEP) issued a statement Friday, August 17, clarifying her position on the frequency at which public companies should have to report their financial results after Donald Trump said that his tweet earlier this morning was prompted by comments from her.
"Many market participants, as well as the Business Roundtable which we are a part of, have been discussing how to better orient corporations to have a more long-term view," Nooyi said. "Most agree that a short-term only view can inhibit long-term strategy, and thus long-term investment and value creation."
Her statement was in response to Trump's tweet Friday morning suggesting that he was looking into changing the rules so that publicly traded companies only have to report their financial results every six months, as opposed to every three months as is currently required.
In speaking with some of the world's top business leaders I asked what it is that would make business (jobs) even better in the U.S. "Stop quarterly reporting & go to a six month system," said one. That would allow greater flexibility & save money. I have asked the SEC to study!— Donald J. Trump (@realDonaldTrump) August 17, 2018
Following the tweet, Trump held an impromptu news conference on the White House lawn in which he said he got the idea from Nooyi.
"My comments were made in that broader context, and included a suggestion to explore the harmonization of the European system and the U.S. system of financial reporting. In the end, all companies have to balance short-term and long-term performance," Nooyi said.