Mock named new Teachers’ CEO
At the start of 2014, Ron Mock, currently senior vice-president, fixed income and alternative investments, will succeed Jim Leech as president and CEO of the Ontario Teachers’ Pension Plan, which has $130 billion in assets.
Mock joined Teachers’ in 2001 as director of alternative investments. He was promoted to vice-president later that year, a position he held until 2008, when he was promoted to senior vice-president, assuming responsibility for all fixed income assets and strategy as well as alternative investments and hedge funds.
In the ’90s, Mock was CEO and co-founder of Phoenix Research and Trading, a hedge fund management company that collapsed in 2000 with losses of more than US$125 million. The collapse was caused by an unapproved trade by an employee. When Mock learned of the trade, he notified the Ontario Securities Commission but was reprimanded for not supervising trading closely enough. In 2003, he accepted a six-year ban from taking a position as a director or officer of a public company.
According to Leech, Mock’s track record at Teachers’ is excellent. The fixed income portfolio totalled $60.0 billion at the end of 2012. “Ron has a reputation for collaboration and team building, balancing current needs with a view to future possibilities,” says Leech. “I have the luxury of inheriting the leader-ship of a thriving and successful organization,” says Mock of his new role.
“I will be working closely with Jim until his retirement to ensure a smooth transition. While this appointment may be somewhat daunting, the prospect of leading this exceptional organization is the most invigorating challenge I have ever faced, and I look forward to doing my best for everyone.”
Benefits costs to overwhelm most companies
Employee health, drug and disability costs have risen significantly and are expected to increase, yet only 15% of companies are even close to being prepared, according to the 2013 Banking on Productivity: Managing Employee Health Costs study.
The small number of companies that are prepared have begun considering a funding strategy to address the impact of future cost drivers, such as an aging workforce, the expenses related to drug and disability plans, and legislative changes.
Fifty-three percent of respondents say health benefits costs were significantly increasing, and 37% say they’ve increased somewhat over the past two to five years, due to inflation and population changes. Disability benefits costs are also seen as increasing, with 54% saying they have increased somewhat.
Asked to rate the risk of a series of health and pension issues, 64% of respondents identified drug costs as a leading concern.
The month in numbers
84% – Canadians who believe they would face a major financial hit in the event of disability — BMO Wealth Institute May 2013 report
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