The Securities and Exchange Commission (SEC) today announced long-awaited appointments of new Public Company Accounting Oversight Board (PCAOB) members.  The SEC appointed James R. Doty as Chair and Jay D. Hanson and Lewis H. Ferguson as members of the PCAOB.  As noted in the Wall Street Journal, together with Daniel L. Goelzer and Steven Harris, these three additions will bring the Board up to a full five members for the first time since 2009. 

Two of the new members bring strong regulatory experience to their new positions.  In addition to being a partner at a firm that represented the PCAOB in connection with its Constitutional challenge, Mr. Doty is a well respected securities lawyer who previously served as the SEC’s General Counsel.  Similarly, Mr. Ferguson served as the PCAOB’s first General Counsel and will now return to the Board following time in private practice.

Meanwhile, Mr. Hanson will draw on his thirty-plus years of experience with McGladrey & Pullen LLP, where he currently serves as a Partner and the National Director of Accounting.  His practical experience in the industry will bring an excellent new perspective to the PCAOB, as Mr. Hanson will be the first former audit partner to sit on the Board – something that should serve the PCAOB well.   

With these new appointments, the PCAOB will also be saying farewell to Charley Niemeier and Bill Gradison, two of the Board’s founding members.  Mr. Niemeier, who was the Acting Chairman when the PCAOB first opened its doors, should be credited for much of the successes and accomplishments the PCAOB has experienced since its inception, including the development of the PCAOB’s inspection program.  Mr. Gradison also served as an Acting Chairman during his term as a Board Member, and both agreed to stay on the Board for far longer than their terms while the SEC searched for their replacements.