The Renomination of Commissioner Aguilar

The Washington Post revealed that the Obama Administration has now sent two names to Congress with respect to membership on the Securities and Exchange Commission:  Commissioner Aguilar for reappointment and David Gallagher to fill the position that will be vacated by Commissioner Casey.  The appointments will maintain the political balance on the Commission with three democrats (although the Chair, Mary Schapiro, is actually an independent) and two republicans (Commissioner Paredes is the other).  Both still must be approved by the US Senate.  Nonetheless, with a republican and democrat paired, there is little reason to think that the nominations will encounter any difficulty. 

Commissioner Aguilar has been a solid, pro-investor, pro-enforcement vote.  Most noticeably, he has taken on the issue of diversity, both with respect to corporate boards and the Commission itself.  Improving diversity in both areas takes time and a second term at the Commission provides Commissioner Aguilar with greater opportunity to see progress on the issue.  In particular, he will be in a position for at least several more years to make sure that the new SEC disclosure requirements on diversity result in meaningful disclosure.  These are the kind of disclosure requirements that will slip into boilerplate oblivion unless companies get the message that the Commission is looking at them closely.  And for that to happen, there needs to be leadership at the top.  That leadership has just been renominated.