Exxon CFO Calls for Safe Harbors to Ease Risk Factor Disclosures

The SEC should put better safeguards in place for companies facing lawsuits to give corporations the confidence to stop over-disclosing risk factors, Exxon Mobil Corp.'s chief financial officer told the agency Wednesday.

Cutting disclosure requirements is a key part of SEC Chairman Paul Atkins’s rulemaking agenda. Exxon highlights a hurdle to that mission: Even if companies were allowed to cut certain disclosures, the threat of litigation still may force the status quo.

Exxon’s letter asked the SEC to consider new litigation safe harbors—something Atkins has supported—and change what constitutes “public disclosure.” Since many investors get their company news ...