Martin C. Schmalz Named PCAOB Chief Economist and Director of Its Office of Economic and Risk Analysis

The Public Company Accounting Oversight Board (PCAOB) today announced that Dr. Martin C. Schmalz has been named the PCAOB’s Chief Economist and the Director of its Office of Economic and Risk Analysis (OERA). In this role, Dr. Schmalz will be primarily responsible for advising and assisting the Board by conducting independent, data-driven economic and risk analyses to inform its oversight activities, including inspections, investigations, rulemaking, and standard setting.

Acting Director Michael J. Gurbutt will resume his role as OERA’s Deputy Director of Economic Analysis and Operations, where he is responsible for economic and post-implementation analysis of PCAOB rules and standards, advising the PCAOB Chief Economist on policy questions and strategic initiatives, and managing the day-to-day operations of the office.

“Dr. Schmalz brings extraordinary expertise to the PCAOB’s work to deliver strong economic and risk analysis that informs our work to protect investors. We are thrilled to have Dr. Schmalz on board, and grateful he will have the knowledge and experience of Mike Gurbutt at his side,” said Chair Erica Y. Williams. “Mike’s steady leadership has been essential to OERA during this transition, and we thank Mike for his continued dedication to the mission of protecting investors.” 

Prior to joining the PCAOB, Dr. Schmalz was a tenured Professor of Finance and Economics at the University of Oxford, Saïd Business School, serving as the Academic Area Head for the Finance, Accounting, Managerial Science, and Economics faculty group. Additionally, he was a Research Affiliate with the Centre for Economic Policy Research in London and CESIfo in Munich, as well as a Research Member with the European Corporate Governance Institute in Brussels. 

Dr. Schmalz previously served as the NBD Bancorp Assistant Professor in Business Administration, Harry H. Jones Research Scholar, and as an Assistant Professor of Finance at the University of Michigan’s Stephen M. Ross School of Business. He was also a Faculty Affiliate of the Center on Finance, Law and Policy at the University of Michigan.

Dr. Schmalz holds a graduate degree (Dipl.-Ing.) in mechanical engineering from the Universität Stuttgart, in Stuttgart, Germany, and a Ph.D. in economics from Princeton University.

“I am delighted to join the talented team in the Office of Economic and Risk Analysis alongside Mr. Gurbutt as we work to help the PCAOB protect investors,” said Dr. Schmalz.

A certified public accountant in Virginia and a Fellow of the Institute of Chartered Accountants in England & Wales, Mr. Gurbutt has been with the PCAOB since 2010. Among other accomplishments during his 2022-2023 tenure as OERA’s Acting Director, he oversaw the development of multiple economic analyses of new and revised PCAOB rules and standards; the completion of two post-implementation review reports addressing the initial impact of PCAOB requirements related to critical audit matters, auditing accounting estimates, and the auditor’s use of the work of specialists; and a series of related staff white papers supporting this work. 

“OERA brings together an extraordinary group of professionals who each day play a critical role in informing and supporting the PCAOB’s investor protection mission via development of high-quality data-driven research and analysis,” said Mr. Gurbutt. “I look forward to continuing our work together as we uphold the highest standards in economic and risk analysis.”