The SEC's approval of the 2026 PCAOB budget represents a $37.6 million decrease from the prior year, totaling $362.1 million. The budget includes dramatic reductions in executive compensation, with the chairperson's pay cut by 52% and other board members' compensation reduced by 42%. The related accounting support fee will total $306.0 million, down 18.4% or $68.9 million from 2025.
The fee structure will assess $280.3 million on public company issuers and $25.7 million on brokers and dealers. "The PCAOB must exhibit a strong commitment to responsible stewardship of the accounting support fee, which is its primary source of funding and functions as a tax on public companies and broker-dealers," Chairman Atkins said in his statement.
The budget cuts come as part of broader efforts to reassess the PCAOB's operations and strategic direction. Atkins emphasized that "all regulators, including the Commission and the PCAOB, must continually assess how and whether current approaches to fulfilling the Board's responsibilities provide benefits to investors without imposing excessive burdens on businesses."
The approval reflects heightened scrutiny of the PCAOB's spending and operations under the current SEC leadership. The Sarbanes-Oxley Act of 2002, which established the PCAOB, grants the Commission oversight responsibility including annual review and approval of the board's budget and accounting support fee.
"This year's budget decrease represents progress. However, the ongoing initiatives by the Commission and PCAOB to re-assess the PCAOB's strategic plan, operations, and budget remain key priorities for the future," said SEC Chief Accountant Kurt Hohl.
The budget approval underscores the SEC's commitment to robust oversight of the audit regulator. "The decrease in this year's budget does not detract from the significance of the PCAOB's mission, which remains crucial; rather, it underscores that fiscal discipline and regulatory effectiveness complement each other," Atkins stated.