Corporate Governance Trends in the United States

Adapting to a new, evolving political and regulatory landscape

Governance leaders predict boards will devote substantial time to navigating the significant expected shifts in the political and regulatory spheres of the second Trump administration. Within the first days of the new administration, scores of new executive orders triggered some companies and law firms to establish “war rooms” to strategize on the policy changes likely to affect their business, customers, and clients. While impacts will vary significantly by company and industry, there is a widespread expectation that the environment will be more business friendly, with diminished regulatory demands and enforcement risks.

President Trump’s intended agency nominees signal dramatic change, such as the nomination of Paul Atkins to chair the Commission. Atkins, a former SEC Commissioner, is seen as pro-business, with the Wall Street Journal labelling him as a “regulatory skeptic.”. Most expect the SEC to minimize burdens on public companies, backing away from climate disclosure rules and likely lessening support for enforcement. Likewise, in contrast to the first term’s four Labor Secretaries (who were often perceived as anti-union), the current pick for Secretary of Labor has espoused a more measured position. Merger enforcement actions by the FTC and DOJ have already reached a near 20-year low, in part, due to strong anti-merger rhetoric, more aggressive policies, and higher procedural rules. The agencies may relax their 2023 FTC and DOJ guidelines, adopting an even less aggressive approach given the incoming administration’s stance on curtailing merger guidelines and settling merger investigations.

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