Statement on Commencement of Appointment Process for Five Public Company Accounting Oversight Board Seats
June 8, 2021
The Public Company Accounting Oversight Board (PCAOB) is one of the centerpieces of the Sarbanes-Oxley Act of 2002. The PCAOB is governed by a Board of five members, two of whom must be certified public accountants (CPAs), and three of whom must not be. Under the Act, Board members must be “appointed from among prominent individuals of integrity and reputation who have a demonstrated commitment to the interests of investors and the public, and an understanding of the responsibilities for and nature of the financial disclosures required of issuers, brokers, and dealers under the securities laws and the obligations of accountants with respect to the preparation and issuance of audit reports with respect to such disclosures.”
On behalf of the Commission I am soliciting nominations for all five of the Board seats, including the Chair. Each seat is associated with a set five-year term; any nominee selected by the Commission to fill a board seat will serve for the remainder of the term associated with that seat. If eligible, the Commission may reappoint such person to a second, full term. Any Board member, including the Chair, may be appointed to any seat. The Chair’s seat may be filled by either a CPA or a non-CPA, though any member who is a CPA is eligible to serve as Chair only if that individual has not been a practicing CPA for five years preceding possible appointment as Chair.
The terms associated with each seat are as follows:
- Seat 1 – The term expires on October 24, 2022.
- Seat 2 – The term expires on October 24, 2023.
- Seat 3 – The term expires on October 24, 2024.
- Seat 4 – The term expires on October 24, 2025.
- Seat 5 – The term expires on October 24, 2021; the next five-year term expires on October 24, 2026. The candidate selected for this seat may be appointed to serve both terms (constituting two separate appointments).
The process for solicitation of nominees and selection of Board members is administered by the Commission’s Office of the Chief Accountant and is described at: https://www.sec.gov/financial-reporting-structure.
Individuals interested in being considered for a position as Board member of the PCAOB should submit the following to the Office of the Chief Accountant, at Boardrecommendations@sec.gov, by June 29, 2021: (1) a cover letter, discussing the statutory qualifications listed above; and (2) a current résumé or curriculum vitae.