Companies Heed SEC Call for Self-Reporting, but Want Clear Perks

When a company realizes it messed up, it has a choice: hide the misstep—or cooperate with regulators.

For violations of securities law, companies are increasingly choosing the latter, cooperating with Securities and Exchange Commission investigations for violations like failing to disclose executive perks, or employees’ use of unmonitored communication channels.

Nearly 30% of the SEC’s settled enforcement actions with companies in fiscal 2023 credited the entities for cooperating with the agency’s investigation—up from a recent average of about 20%, a Bloomberg Law analysis found. Cooperation includes self-reporting the violation and taking remedial measures.

The SEC under the Biden administration has ...