Donald Nicolaisen, chief accountant for the Securities and Exchange Commission, is stepping down this month to return to the private sector.
He has served during one of the most active periods in the history of the SEC. During his tenure, Nicolaisen played a prominent role in the implementation of Section 404 of the Sarbanes-Oxley Act of 2002, especially in the SEC’s decision to postpone the effective date several times. He also backed the Financial Accounting Standards Board’s controversial efforts to require the expensing of stock options.
Nicolaisen says that, though he is pleased with the work he has done, there is still unfinished business at the SEC. “[There is a] need to reduce the complexity of virtually every aspect of financial reporting, and to increase transparency,” he says, noting that such reform will require support from both FASB and the Public Company Accounting Oversight Board.
Nicolaisen’s decision to step down was influenced by his wish to eliminate his weekly commute from his home in New Jersey, he says. The chief accountant, who was appointed by former SEC chairman William Donaldson in 2003, following a rash of corporate scandals, looks back on his contribution with pride. “I was delighted to be part of the team that helped calm that situation,” he says. “I think we’ve been successful in returning a degree of confidence to the capital markets and improving financial reporting.” — Craig Schneider
Scandal Scorecard | ||
Who, Former Position | Status | Prison Sentence |
WorldCom | ||
Bernard Ebbers CEO | Guilty verdict | 25 years |
Scott Sullivan CFO | Pleaded guilty | 5 years |
David Myers Controller | Pleaded guilty | 1 year, 1 day |
Buford Yates Accounting Director | Pleaded guilty | 1 year, 1 day |
Enron | ||
Kenneth Lay Chairman | Awaiting trial | |
Jeffrey Skilling CEO | Awaiting trial | |
Andrew Fastow CFO | Pleaded guilty | 10 years |
Lea Fastow Assistant Treasurer | Pleaded guilty | 1 year |
Michael Kopper Managing Director | Pleaded guilty | Awaiting sentencing |
Adelphia | ||
John J. Rigas Founder | Guilty verdict | 15 years |
Timothy Rigas CFO | Guilty verdict | 20 years |
Michael Rigas EVP | Not-guilty verdict* | |
James R. Brown VP Finance | Pleaded guilty | Awaiting sentencing |
Michael C. Mulcahey Assistant Treasurer | Acquitted | |
Tyco | ||
Dennis Kozlowski CEO | Guilty verdict | 8 1/3 to 25 years |
Mark Swartz CFO | Guilty verdict | 8 1/3 to 25 years |
Mark Belnick General Counsel | Acquitted | |
HealthSouth | ||
Richard Scrushy CEO | Acquitted | |
Malcolm McVay CFO | Pleaded guilty | Home detention** |
Weston Smith CFO | Pleaded guilty | 2 years, 3 months |
William T. Owens CFO | Pleaded guilty | Sentencing 11/10 |
Michael Martin CFO | Pleaded guilty | 1 week |
Aaron Beam Jr. CFO | Pleaded guilty | 3 months |
Emery Harris VP Finance | Pleaded guilty | 5 months |
*Found not guilty on conspiracy and wire fraud. Will be retried on 15 other charges. **Sentence has been appealed by the federal government. |