US SEC OKs audit watchdog's 6 pct budget increase

By Rachelle Younglai

WASHINGTON, Dec 18 (Reuters) - The U.S. Securities and Exchange Commission approved the Public Company Accounting Oversight Board's 6 percent budget increase for 2008 on Tuesday, but not without one SEC commissioner complaining that the audit watchdog's salaries for board members were too high.

The SEC voted 3-1 in favor of allowing the PCAOB, which oversees corporate auditors, to spend $144.6 million in 2008, compared to $136.4 million this year.

The board, a nonprofit corporation established by Congress to regulate the accounting profession, expects to spend more than 70 percent of its budget on hiring and retaining experienced auditors.

PCAOB Chairman Mark Olson said it was hard to achieve the staffing required given the "tight market for the skill set."

But SEC commissioner Paul Atkins objected to the board members' salaries, which are up about 14 percent since the PCAOB's first budget in 2003.

The four board members are expected to earn $531,995 in 2008, a 3.3 percent increase over 2007. Olson is expected to earn $654,406 next year, also up 3.3 percent over this year.

"I am concerned that the board salaries are disproportionally high, and we must not forget that these salaries along with the rest of the board budget are paid by investors," said Atkins, who cast the dissenting vote.

PCAOB salaries are much higher than those of SEC commissioners, who earn $145,400 a year. SEC Chairman Christopher Cox earns $154,600.