CAAT Leader Derek Dobson Resigns, Repays $1.6M Vacation Payout
In a significant shift within its leadership, the CAAT Pension Plan announced the resignation of CEO Derek Dobson, effective immediately. Dobson’s departure comes amidst a settlement agreement, which includes his decision to repay a contentious vacation payout of $1.6 million he received last year. This payout was criticized for conflicting with internal policies regarding unused vacation time.
Derek Dobson’s Tenure and Controversy
Dobson led the CAAT Pension Plan for nearly 17 years. Under his leadership, the fund’s assets skyrocketed from $4 billion to over $23 billion. The plan serves an extensive network of Ontario’s colleges and more than 800 employers, totaling around 125,000 members.
Recent turmoil within CAAT surfaced in November 2025. The chief investment officer, chief financial officer, and chief pension officer urged the board to investigate leadership concerns regarding Dobson. Their letter included issues such as the controversial vacation payout and a personal relationship Dobson had with a CAAT employee, raising concerns about potential conflicts of interest.
Leadership Changes at CAAT
In light of these issues, three senior executives left the organization in late January. Following this, both the board chair, Don Smith, and vice-chair, Kareen Stangherlin, resigned, contributing to a leadership vacuum. Currently, Kevin Fahey serves as the acting CEO, a role he assumed after Dobson was placed on leave in February.
- New Leadership Appointments:
- Jillian Kennedy: Promoted to Chief Operating Officer
- Laura Foster: Interim Chief Financial Officer
- James Fera: Chief Legal Officer and General Counsel
- John Baiocco: Senior Vice-President of Funding and Sustainability
- Stephen Hewitt: Senior Director of Communications
Future of CAAT Pension Plan
CAAT remains in a robust position, with a plan surplus of $1.24 for every dollar of expected pension obligations. The board is committed to improving governance and oversight, as acknowledged in their statement. CAAT expressed gratitude to the Financial Services Regulatory Authority of Ontario (FSRA) for its ongoing support during this transition.
As CAAT moves forward, both the board and its members emphasize the importance of ensuring the plan’s long-term viability and enhancing retirement income security for Canadians.
