The race is on to land one of the highest-paying regulatory jobs in Washington.
At least three candidates are jockeying to become chairman of the Public Company Accounting Oversight Board, a little-known body that polices the country’s largest audit firms.
James Doty, the current chairman who’s fighting to keep the job, makes more than $670,000 a year. Among those being considered to replace him are Lewis Ferguson, a sitting PCAOB board member, and William Duhnke, the top Republican staff member on the Senate Banking Committee, according to two people with knowledge of the matter.
All three have made their case to U.S. Securities and Exchange Commission Chair Mary Jo White, whose agency appoints PCAOB members, said the people, who asked not to be named because the process for selecting a new chairman is private.
Political Minefield
For White, the appointment is a political minefield and could be crucial in lighting a fire under the PCAOB, which Congress created in 2002 after Enron’s meltdown eroded investor confidence in accountants. Since Doty took over in 2011, the board has struggled to enact regulations in the face of industry lobbying.
Last year, it dropped plans for a rule that would have forced companies to switch auditors every decade. While the goal was to make accounting firms less cozy with their clients and bring in fresh eyes to scrutinize corporate financial statements, the PCAOB backed off after House lawmakers voted to block the regulator’s authority.
In December, the SEC’s own chief accountant, James Schnurr, publicly chastised the PCAOB, saying too many of its rulemaking priorities “simply have been moving too slowly.”
Recently SEC officials have signaled they’re more pleased with the PCAOB’s momentum. For instance, the board issued a plan in June for identifying benchmarks that make up a good audit. White said at a Wednesday meeting attended by accountants and investors that she is “very pleased with the level of coordination between the commission and the PCAOB.”
Some of the lobbying over the PCAOB’s leadership is coming from Capitol Hill. Senate Banking Committee Chairman Richard Shelby recommended Duhnke to White, according to people familiar with the matter. The pressure has put White in a sensitive situation, as Shelby’s committee oversees the SEC’s activities. Torrie Miller, a spokeswoman for Shelby, declined to comment.