A high-paid regulator operating in the shadows: What could go wrong?

Those who fear the federal government’s overregulation of industry will find little to like about an article in the latest Bloomberg Businessweek.

The race is on to land one of the highest-paying regulatory jobs in Washington.

At least three candidates are jockeying to become chairman of the Public Company Accounting Oversight Board, a little-known body that polices the country’s largest audit firms.

James Doty, the current chairman who’s fighting to keep the job, makes more than $670,000 a year. Among those being considered to replace him are Lewis Ferguson, a sitting PCAOB board member, and William Duhnke, the top Republican staff member on the Senate Banking Committee, according to two people with knowledge of the matter. …

… For White, the appointment is a political minefield and could be crucial in lighting a fire under the PCAOB, which Congress created in 2002 after Enron’s meltdown eroded investor confidence in accountants. Since Doty took over in 2011, the board has struggled to enact regulations in the face of industry lobbying.

Last year, it dropped plans for a rule that would have forced companies to switch auditors every decade. While the goal was to make accounting firms less cozy with their clients and bring in fresh eyes to scrutinize corporate financial statements, the PCAOB backed off after House lawmakers voted to block the regulator’s authority.

In December, the SEC’s own chief accountant, James Schnurr, publicly chastised the PCAOB, saying too many of its rulemaking priorities “simply have been moving too slowly.” …

… Congress required the lofty PCAOB salaries to discourage the board’s officials from leaving for jobs in the accounting industry. Doty earns $672,676 a year, while board members such as Ferguson make $546,891. By comparison, White earns $165,300 a year as SEC chairman and Federal Reserve Chair Janet Yellen makes $199,700.

High pay isn’t the only reason the PCAOB is a plum job. The board has historically escaped the media attention and congressional oversight that the SEC and other financial regulators often attract.