The Securities and Exchange Commission is starting to relax financial disclosure requirements for private companies, a sign that the SEC’s new leadership may pull back on plans by former chair Mary Jo White to tighten regulations for Silicon Valley.

Last week an SEC advisory committee recommended easing rules that require private companies granting more than $5 million in stock awards to employees to also reveal details of their financial performance to employees, lawyers say. It's a particular issue for private tech companies, which have long considered the rules burdensome, and some have found ways around them. Last year, under Ms. White’s leadership, the SEC began investigating whether major venture-backed companies were violating the financial disclosure rules.