Statement by SEC Commissioner:
New Public Company Accounting Oversight Board
by
Commissioner Cynthia A. Glassman
U.S. Securities and Exchange Commission
SEC Headquarters, Washington, D.C.
Open Commission Meeting
October 25, 2002
I am pleased to have the opportunity to vote on the five members of the new oversight Board: Judge Webster, Kayla Gillan, Dan Goelzer, Bill Gradison, and Charlie Niemeier.
There is no doubt in my mind that we need new oversight and discipline of the accounting profession - to restore confidence in the profession and in the financials of the public companies they audit.
My view throughout the process has been that I want the following characteristics in the Board
- integrity
- competence
- independence
- a balance of views
- a diversity of expertise
- team players
I wanted people who understand the issues and what has gone wrong in the accounting profession — but I did not want Board members beholden to the accounting profession or any particular viewpoint.
I did want legal expertise, the investor perspective, public board and audit client perspective, enforcement capability, someone who understands the political process and someone who understands the SEC's processes. I wanted a Chairman who is well recognized, who commands the respect of the American public, and who has run a large organization.
As I have said all along, getting to the right Board involved mixing and matching of people and attributes to get to the right balance. In my view, this Board meets my criteria and provides that balance. While we were fortunate to have a large pool of exceptionally well-qualified candidates to choose from, for me the choice came ultimately down to who was best qualified. Nobody can quarrel with Judge Webster's qualifications, or seriously assert — given his background, reputation for integrity and history of public service — that he will be anything less than a strong leader and vigorous advocate on behalf of investors. In my view, he is the best choice to head the Board.
I am pleased to support Judge Webster and the other nominees now, and as they continue the difficult work they have graciously agreed to undertake on behalf of the American investors.
I also want to thank Bob Herdman and his staff — especially Bert Mehrer, Bob Burns, and Sam Burke — for all of their efforts in putting this Board together.
Once the vote is taken in a few moments, I hope that everyone will support our final choice and that the Board can get on with the important business of implementing effective oversight and discipline for the accounting profession.
http://www.sec.gov/news/speech/spch595.htm
