Eliminating Quarterly Guidance

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Jun 07, 2018

On June 7, 2018, the Business Roundtable (BRT), the National Association of Corporate Directors (NACD) and the National Investor Relations Institute (NIRI) announced their support for companies moving away from an expectation of providing quarterly earnings per share guidance and potentially dropping such guidance in the future.

Business Roundtable supports corporate strategies that allocate capital for long-term growth and management of risks, with the goal of producing sustainable value creation. Public companies should be managed for long-term prosperity, not to meet the latest forecast. Such short-termism is unhealthy for America’s public companies and financial markets — which are critical to economic growth and financial prosperity.

Review the press releases from Business Roundtable, the National Association of Corporate Directors and the National Investor Relations Institute and publications from the Wall Street Journal and The Accounting Review.

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