Probable Turnover at the SEC

Commissioners serve five year terms.  See Section 4 of the Exchange Act, 15 USC 78d.  In theory they can only be removed for cause.  But see Justice Breyer's dissent in FEF v. PCAOB.  As a practical matter, the terms are staggered so that one term expires each year. 

The statute prohibits more than three commissioners from the same party.  Commissioners Casey and Paredes are Republicans; Commissioners Aguilar and Walter are Democrats.  The Chairman is an independent. 

Commissioner Aguilar's term expired last year.  Commissioners are, however, allowed to  remain in office "until the end of the next session of Congress, unless a successor is appointed before that time."  See CRS Report at 43.  See also Section 4 of the Exchange Act ("Each commissioner shall hold office for a term of five years and until his successor is appointed and has qualified, except that he shall not so continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office").  No public statement has been issued on Commissioner Aguilar's reappointment, but he has received the support of Senator Menendez.

The next Commissioner whose term will expire is Commissioner Casey.  Having been appointed in 2006, Commissioner Casey's term expires on June 5, 2011.  She is likewise allowed to remain in office until the end of the next session of Congress or a successor is appointed.  

Public reports suggest that a successor is in fact in the works.  The Obama Administration apparently has under consideration Daniel M. Gallagher, a former staff member (Trading & Markets) and currently a partners at WilmerHale.  His firm bio is here. If the successor is Mr. Gallagher, it will be a quick return to the Commission.  He left in early 2010 as the Deputy Director of the Division (after also having served as co-diector of the Division).   

The various reports do not reveal political affiliation and President Obama could take someone from either party (or even another independent) and remain within the statutory requirements.  He has, however, been described as filling a "Republican seat."  Likewise he served as counsel to Commissioner Atkins and Chairman Cox.  His appointment will, therefore, not change the political makeup of the Commission.