The CEO of CAAT pension plan has resigned and will repay a $1.6-million vacation payout he received in 2025.
On Friday morning, CAAT (Colleges of Applied Arts and Technology) pension plan announced in a news release that Derek Dobson reached a settlement agreement with the company after being put on administrative leave by the board of trustees last month.
“Both Mr. Dobson and the CAAT board of trustees acknowledge the importance of moving forward in a manner that supports the long-term health of the plan and the beneficiaries it serves,” CAAT said in the release.
The $1.6-million vacation payout was among concerns cited by three senior executives who abruptly left the organization in January, leading to a governance upheaval at the plan and several other executive departures. Another concern was related to the CEO’s sanctioned relationship with a co-worker.
Corporate governance experts told the Star that the sheer amount Dobson received in lieu of taking vacation is “exceptional” and a “red flag.”
The non-profit pension plan, which manages the retirement dollars for 125,000 members (including Toronto Star employees), has launched an independent governance review, which is still underway.
“The independent governance review is progressing well,” said CAAT spokesperson Stephen Hewitt. “The board will provide an update following its conclusion.”
Dobson had been the head of CAAT since 2009, when the plan held $4 billion in assets. Today, the organization manages $23 billion.
“After nearly 17 years as CEO and plan manager of the CAAT pension plan, I am concluding my tenure with deep pride in what we accomplished together,” Dobson wrote in an emailed statement to the Star.
“I have been privileged to work alongside extraordinary people who shared a similar purpose of improving retirement income security for Canadians.”
In light of the three senior executive departures, the Ontario Public Service Employees Union (OPSEU), which appoints five trustees to the board, suspended former board chair Don Smith.
The union alleged that he and former vice-chair, Kareen Stangherlin, made decisions about the CEO’s compensation without informing the other members of the board.
Smith was subsequently fired and Stangherlin resigned.
Also Friday, CAAT announced a new leadership team as part of the plan’s effort to restore trust. The plan is well-funded, with $1.24 in assets for every dollar of promised benefits.
This is a developing story.
