SEC chief accountant Hewitt has objectives: three short-term and three long-term.

• Author: Heffes, Ellen M.
• Position: Financial reporting - Conrad W. Hewitt, Securities and Exchange Commission - Interview

Conrad W. Hewitt, the chief accountant at the U.S. Securities and Exchange Commission (SEC), spoke with Financial Executive Executive Editor Ellen Heffes about his role and his priorities.

You've been chief accountant of the SEC for less than six months now. Is the job about what you expected it to be?

Hewitt: When I took this position, I expected it to be challenging--as I do love challenges. It is a challenging job, and I'm enjoying it. When I started back in August, the accounting issues related to the backdating of stock options had just occurred, and I knew that would be a problem for the registrants and external auditors. Also, I expected to be involved in dealing with concerns relating to the implementation of the 404 reporting requirements, especially those regarding the cost to small and mid-sized companies. Having been on the boards of small and mid-sized companies, I spent much time in the past few months in this area.

SEC Chairman Christopher Cox said that your mission is "to maintain the integrity and strength of the markets in an era of unprecedented global competition." While you say you like challenge, why, at this point in your career, did you decide to take on this particular challenge?

Hewitt: I've taken this opportunity as a way to cap my career. I'm known by many to be a very charitable person--because my philosophy is to give back to the community what I can. In that context, I knew that when I retired from public accounting I wanted to give back my experience and expertise to the public sector. I did that when I became the superintendent of banks for the State of California and the first commissioner for the Department of Financial Institutions for the State of California. My role with the SEC furthers that same philosophy.

You have quite a varied background, in accounting, in both the private and public sectors, as well as having served on corporate boards. How do you believe this broad background has prepared you for chief accountant at the SEC?

Hewitt: I believe that I have a unique background for this position [and] that has certainly prepared me well. Being a regulator for financial institutions in the State of California was a large responsibility, during which I learned how to work with the legislators, [the] administration and other regulators, such as the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC). I also worked with the public, the press, my staff and the law and regulations. Our mission in California was to protect the depositor, then the FDIC insurance fund and, ultimately, the taxpayer.

Similarly, I see my role here at the SEC is to protect the investors, maintain an orderly marketplace and facilitate capital formation. I might just say that in the brief time I've been here at the SEC, that I've used [the experience of] many phases of my long career several times already!

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