The chair of the CAAT pension plan’s board, Don Smith, has been suspended amid a governance crisis at the plan.
On Tuesday, the Globe and Mail reported that Smith oversaw an approval made by the board to pay CAAT CEO Derek Dobson a $1.6 million vacation payout and sanctioned Dobson’s relationship with a CAAT employee.
CAAT, which manages the pensions of more than 120,000 public- and private-sector workers across Canada, confirmed that the Ontario Public Service Employees Union (OPSEU) removed chair Smith as its nominee on the plan’s board of trustees.
The news comes after CAAT announced the sudden departure of three senior executives — the chief investment officer, chief financial officer and chief pension officer — last Wednesday.
Sometime prior to December 2025, the board of trustees became aware of “concerns” that had been raised with respect to vacation payments made to Dobson, according to CAAT spokesperson Stephen Hewitt.
He said the board has appointed “an independent expert” to conduct a governance review, which is on track to be completed in the “coming weeks.”
“If changes are needed to continue to provide effective governance and align with best practices, the board will consider them,” Hewitt said, emphasizing that CAAT continues to “have confidence” in the CEO’s leadership.
OPSEU did not respond to a request for comment in time for publication.
CAAT also confirmed that, in November 2024, Dobson informed the board of trustees that he had begun a consensual relationship with a fellow employee. The disclosure was compliant with the pension plan’s policies on workplace relationships, said Hewitt, and the CEO’s conduct was reviewed by external lawyers.
“The employee is long tenured, was not hired by the CEO, is not a direct report of the CEO and is multiple levels removed in terms of reporting lines,” added Hewitt.
Both the CEO and the employee will continue in their roles at CAAT.
This is a developing story.
