The Securities and Exchange Commission has appointed James R. Doty as chairman of the Public Company Accounting Oversight Board, and Jay D. Hanson and Lewis H. Ferguson as members.
Two board members, Bill Gradison and Charles Niemeier, who had stayed beyond the expiration of their terms during the protracted search for the new board members and chairman, will be retiring. Daniel Goelzer, who has been acting chairman since August 2009, following the resignation of former PCAOB chairman Mark Olson at the end of July, will remain on the board. Goelzer has another year on his second term, until October 2011, according to a spokesperson.
Doty is currently a partner at the law firm of Baker Botts LLP in Washington, D.C. He has represented clients on a wide range of securities law matters. He also counsels boards of directors and audit committees on problems arising under the Sarbanes-Oxley Act and related issues. Doty served as the SEC's general counsel from 1990 to 1992. He received an LL.B. from Yale Law School, an M.A. from Harvard University, an A.B. from Oxford University, and a B.A. from Rice University.
"Jim, Jay, and Lew bring a deep and diverse perspective to the Board through their substantial experience and commitment to the interests of investors and the public," said SEC Chairman Mary L. Schapiro in a statement. "These prominent individuals have in-depth knowledge of the financial reporting system and auditing framework, which will serve the PCAOB well as it executes its rigorous agenda."
“I appreciate the confidence that Chairman Schapiro and the Commission have shown in me. I look forward to working with my colleagues on the Board and the staff of the PCAOB,” said Doty. “This is an important time for our capital markets and the Board. There is much work to be done for America's investing public, and I'm eager to get started.”
Hanson is currently a partner and the national director of accounting at McGladrey & Pullen LLP in Bloomington, Minn., with overall responsibility for leading the firm's accounting standards group. He has been with the firm for more than 30 years. Hanson is a also member of the Emerging Issues Task Force of the Financial Accounting Standards Board, and chairs the Financial Reporting Executive Committee of the American Institute of CPAs. He received a B.A. from Concordia College.
“The PCAOB fulfills a crucial role to ensure financial information provided to investors is fairly presented,” said Hanson. “The PCAOB’s oversight has helped to improve audit quality and strengthen the auditing profession. It’s difficult to leave McGladrey & Pullen after all these years, but I’m deeply honored to be appointed to this important role.”
Ferguson is currently a partner at the law firm Gibson, Dunn & Crutcher LLP in Washington, D.C., specializing in securities transactions and disclosure, representation of audit committees and auditors, and corporate governance matters. Prior to joining the firm, Ferguson served for more than three years as the first general counsel of the PCAOB. He received a J.D. from Harvard Law School, a B.A. and M.A. from Cambridge University, and a B.A. from Yale College.
"I am honored to have been chosen by the SEC to be a member of the PCAOB," said Mr. Ferguson. "The PCAOB plays an important role in protecting investors in U.S. public companies, and I look forward to returning there as a Board member to continue and to build on the work we did when I was the Board's first general counsel."
Goelzer congratulated the new PCAOB members and bid farewell to the departing members on the now five-member board.
“I am very pleased that the SEC has appointed three outstanding individuals to the board,” he said. “I look forward to working with Jim Doty, Lew Ferguson, and Jay Hanson in continuing to carry out the Board’s mission to protect investors and promote public confidence in audited financial reporting. At the same time, I want to thank the retiring Board members, Bill Gradison and Charley Niemeier, for their immeasurable contributions as founding members of the Board and for their years of dedicated service. Investors owe them a debt of gratitude.”
Cindy Fornelli, executive director of the Center for Audit Quality, praised the selection of the new PCAOB members. "The three new board members bring a wealth of experience and expertise to the board," she said. "And I’m pleased to note that each has an understanding of our complex and increasingly interconnected global markets and an appreciation of the important role that public company auditors play in protecting investors. Attorneys Jim Doty and Lew Ferguson are highly-regarded for their knowledge of auditing and financial reporting issues. In fulfilling its responsibility to select a CPA to serve on the board, the SEC’s choice of Jay Hanson means that practical post-Sarbanes-Oxley audit experience will be factored into the PCAOB’s standard-setting and other duties."
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