The Colleges of Applied Arts and Technology pension plan has suspended its board chair Don Smith.
The pension organization, which oversees more than $23 billion in assets under management, is awaiting the results of a governance review following concerns raised over a $1.6 million vacation payout to chief executive officer Derek Dobson.
In an emailed statement to Benefits Canada, CAAT spokesperson Stephen Hewitt said the organization appointed an independent expert to conduct the review, which covers its governance policies, procedures and practices. “The review is in advanced stages and is on track to be complete in the coming weeks.”
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Smith remains a trustee but has been removed from his position as one of the Ontario Public Service Employees Union nominees on the plan’s board of trustees.
In an emailed statement, a spokesperson for the Financial Services Regulatory Authority of Ontario told Benefits Canada the regulator was aware of recent developments at the pension organization. However, the FSRA doesn’t comment on supervisory activities or engagements involving specific pension plans.
“FSRA monitors developments that may have implications for plan governance and administration and engages with pension plan administrators, as appropriate, to ensure compliance with the Pensions Benefits Act.”
A report by the Globe and Mail noted senior executives expressed concern at the vacation payout plan to Dobson, which was approved by the board leadership in lieu of vacation time. Smith also oversaw the approval of a current workplace relationship that Dobson has with an employee of the organization. A report by the Toronto Star noted the organization said it has confidence in the CEO’s leadership but if changes are needed, the board will consider them.
The governance crisis at the CAAT follows the Jan. 19 departure of chief investment officer Asif Haque, chief financial officer Mike Dawson and chief pension officer Evan Howard.
Haque updated his LinkedIn profile to reflect the career change, noting he first started as managing director of investments in June 2010 and became CIO in May 2021. He’s also the chair of the board at the Pension Investment Association of Canada.
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Kevin Fahey, formerly the CAAT’s managing director of private markets, has been promoted to the CIO position. He now leads a team of more than 20 professionals in the investment and oversight of the plan’s assets, according to his personal LinkedIn profile.
Dawson, who started at the CAAT in 2018 and became CFO in 2022, reflected the change by listing himself as a self-employed entrepreneur and writing an column titled ‘Philosophy as Operating System.’
Howard first joined the CAAT in 2012 as general counsel and vice-president of pension management, elevating chief legal and regulatory affairs officer in 2020. He became chief pension officer in March 2024, where he led service delivery, communications, legal, policy and public affairs teams.
In its most recent annual report, the investment organization reported a 10-year annualized net rate of return of 9.6 per cent, beating its benchmark by 1.5 per cent.
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