CAAT CEO Placed on Leave; New Chair and Vice-Chair Appointed Amid Crisis
The CAAT Pension Plan, which manages $23 billion in assets for Ontario’s colleges and over 800 employers, is undergoing significant leadership changes amidst a governance crisis. Derek Dobson has been placed on administrative leave, prompting the board to appoint Kevin Fahey as the acting CEO and plan manager.
Leadership Overhaul at CAAT
This leadership shakeup comes after concerns regarding Dobson’s conduct and oversight by the board. The governance crisis has triggered multiple investigations into potential failures within the organization’s management. Kevin Fahey, who recently became the chief investment officer, is expected to guide CAAT through this tumultuous period.
New Leadership Appointments
- Acting CEO: Kevin Fahey
- Board Chair: Audrey Wubbenhorst
- Vice-Chair: Janet Greenwood
Audrey Wubbenhorst stated that these changes are necessary to rebuild trust among stakeholders. The previous board chair, Don Smith, was removed from his position after concerns about governance practices were highlighted. Vice-chair Kareen Stangherlin has also resigned from her trustee role.
Background of the Crisis
Dobson has been at the helm of CAAT since 2009. His leadership has recently come under scrutiny due to a $1.6 million vacation payout and an ongoing personal relationship with a CAAT employee. This payout raised eyebrows as it contradicted company policy regarding vacation compensation.
While CAAT’s internal guidelines restrict vacation payouts, Dobson received similar payments multiple times. His workplace relationship further complicated internal dynamics, prompting concerns about potential conflicts of interest.
Investigations and Governance Review
In December, an external expert was engaged by CAAT to conduct a governance review, set to conclude later in February. CAAT asserts that the governance issues do not threaten the plan’s financial health, which currently boasts a funded status of 124%. This means the plan has $1.24 in assets for every dollar owed in pensions.
The Financial Services Regulatory Authority of Ontario is also investigating the situation at CAAT. The recent turmoil has led to major turnover within CAAT’s senior leadership, leaving the board under scrutiny and pressure to restore stability.
Impact on Employee Morale
The ongoing leadership changes have reportedly affected morale among CAAT staff, as long-standing seniors have left without substantial explanation. An internal communication emphasized the need for these changes for the sake of stability.
As CAAT navigates this challenging period, its commitment to delivering secure pensions remains intact. Concerted efforts are being made to address governance concerns and reestablish confidence in its leadership.
