The Chief Executive Officer of the CAAT Pension Plan, Derek Dobson, has been placed on administrative leave amidst a governance crisis. In response, the pension plan has appointed Kevin Fahey as the acting CEO, while Audrey Wubbenhorst and Janet Greenwood have taken on the roles of board chair and vice-chair, respectively.
Leadership Changes at CAAT Pension Plan
This urgent restructuring comes as a result of serious concerns raised by CAAT’s top executives regarding Dobson’s conduct and board oversight. Multiple investigations have been initiated to address potential governance failures within the organization.
Background of CAAT Pension Plan
- CAAT is a multiemployer pension plan serving Ontario’s colleges and over 800 employers.
- It currently has approximately 125,000 members.
- The pension plan has total assets amounting to $23 billion.
Kevin Fahey, who has been with CAAT for over 16 years, has stepped up to lead the organization during this transitional phase. Previously, Fahey was appointed as Chief Investment Officer (CIO) in January 2023.
Concerns Leading to Changes
The leadership crisis escalated when three executives, including the CIO, CFO, and Chief Pension Officer, voiced their concerns to the board last November. These tensions became public when they abruptly left their positions on January 19, 2023.
Dobson’s leadership has faced scrutiny for several reasons, including a $1.6 million vacation payment that contradicted company policy and a personal relationship with a CAAT employee that further complicated governance matters. The board had allowed these circumstances to persist but recognized the need for immediate change.
Restoring Trust and Governance Review
In a recent statement, Wubbenhorst emphasized that these leadership changes are essential for re-establishing stakeholder trust in CAAT’s governance and management practices. An external governance review, initiated in December, is expected to be completed soon, aimed at evaluating these issues.
Despite these challenges, CAAT maintains a strong financial status, currently operating at a 124% funded level. This means the pension plan has $1.24 available for every dollar required for member benefits.
Future Outlook
The turmoil at CAAT has raised concerns about staff morale. Many senior leaders have departed in a short timeframe, creating uncertainty within the organization. CAAT’s leadership team must now work diligently to restore stability and confidence among its employees and stakeholders.
