The CEO of CAAT pension plan is being put on administrative leave by the board of trustees, the latest fallout from a governance crisis at the organization.
On Friday morning, CAAT (Colleges of Applied Arts and Technology) pension plan announced in a news release that CEO Derek Dobson is being replaced by Kevin Fahey, the plan’s chief investment officer, effective immediately. Dobson had been the head of the plan since 2009.
CAAT also announced that it has appointed a new chair and vice-chair, replacing Don Smith, who was ousted by the board of trustees last week, and Kareen Stangherlin, who resigned as a trustee.
The plan, which manages the retirement dollars for some 125,000 members from more than 800 employers (including the Toronto Star), has been under public scrutiny since three senior executives abruptly left the organization, citing concerns over a $1.6-million vacation in lieu payout to the CEO as well as his sanctioned relationship with an employee.
The Ontario Public Service Employees Union (OPSEU), which appoints five trustees to the board, suspended Smith on Jan. 23 as one of its appointees. Smith has since been removed from the board. OPSEU also alleges that Smith and Stangherlin made decisions about the CEO’s compensation without informing the rest of the board of trustees.
Stangherlin maintains the allegations against her are not true and that the plan is well-run.
Smith and Stangherlin are being replaced by new chair Audrey Wubbenhorst and vice-chair Janet Greenwood.
Speaking of the CEO change in the news release, Wubbenhorst said, “the CAAT board of trustees has determined that these changes are in the best interests of the plan and are necessary to restore stakeholder trust in CAAT’s leadership, governance and plan management.”
CAAT said an independent governance review is underway and is expected to be completed later in February.
“Good governance is the backbone of a pension plan’s stability and strength, and the foundation for trust between the plan and its sponsors, members and all other stakeholders,” Wubbenhorst said. “The Board will carefully consider findings and recommendations of the independent review and remains focused as always on strengthening plan governance to ensure it aligns with industry best practices.”
This is a developing story.
