The Public Company Accounting Oversight Board (PCAOB) in the US has submitted a proposal for a 20% salary reduction for its board members amid scrutiny, reported the Wall Street Journal.  

As part of its preliminary 2026 budget, the move comes under the scrutiny of the Securities and Exchange Commission (SEC) concerning current compensation levels. 

This proposed budget, which aims to reduce overall spending by roughly 10% from the expected 2025 figures, was recently presented to the SEC; the news publication said, citing sources.  

The 2023 spending by the PCAOB is projected to be below the $399.7m budget approved by the SEC in 2024. 

The current salary structure, which has been in place since 2009, sees the PCAOB chair earning nearly $673,000, with the other four board members each receiving close to $547,000.  

Despite the proposed cuts, these salaries would still be considerably higher than those of the SEC commissioners. 

The SEC has the authority to propose changes to the PCAOB’s preliminary budget by 31 October, with subsequent votes by the audit board and the SEC scheduled for November and December, respectively.  

These plans may be subject to change due to the potential impact of the government shutdown. 

The development coincides with the SEC’s assessment of candidates for the PCAOB board, as the terms of current members are set to expire between 2025 and 2028.  

The SEC retains the power to remove board members at its discretion.  

The rationale behind the proposed budget cuts may be to address the SEC’s considerations for expenditure reductions.  

Paul Atkins, who became head of the SEC in April 2025, has been vocal in the past about his view that PCAOB board member salaries are disproportionately high.