Dimon is the chairman of the Business Roundtable, an association of CEOs of America's leading companies working to promote a thriving USA economy.
JPMorgan Chase CEO Jamie Dimon and billionaire investor Warren Buffett are calling on CEOs to move away from issuing quarterly profit "guidance" to Wall Street analysts, arguing that the financial markets' focus on short-term results harms the economy.
"I have seen managements. get tempted by the predictions that they've made", Buffett said. JPMorgan Chase reported lower fourth-quarter earnings January 12, 2018 on weak trading revenues and one-time costs from USA tax reform, partly offset by gains from higher interest rates.Net income for the quarter ending December 31 was $4.2 billion, down 37 percent from the year-ago period.
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Wolfe, a former Army intelligence analyst, worked for the committee in a nonpartisan capacity for almost 30 years. Prosecutors said Wolfe communicated with a fourth reporter using his Senate email account from 2015 to 2017.
The two executives said on CNBC Thursday that companies that focus on hitting their quarterly numbers may do things that hurt them in the future, such as delaying investments or changing when certain gains are recorded. Around that time, big companies like Coca Cola, UPS and AT&T said they would no longer give quarterly guidance.
Buffett and Dimon said they are not opposed to the current practice of quarterly and annual reporting that ensures transparency. Buffett has echoed the idea that guidance can lead to corporate misbehaviour. "Such short-termism is unhealthy for America's public companies and financial markets - which are critical to economic growth and financial prosperity", Business Roundtable said in a statement. Bloomberg LP, the parent of Bloomberg News, is a member of the Boston-based non-profit group.
In a CNBC "Squawk Box" program interview and an opinion piece published in the Wall Street Journal, Buffett and Dimon said quarterly forecasts, known on Wall Street as "guidance", take up management's time and lead to decisions that don't benefit companies or their shareholders. "We're hoping a bunch of companies drop it right away". Companies including Unilever NV, Facebook Inc., GlaxoSmithKline Plc and BP Plc have scrapped the practice in favor of multi-year outlooks, according to the report.