The Colleges of Applied Arts and Technology’s pension plan is placing chief executive officer Derek Dobson on administrative leave and appointing Kevin Fahey as acting CEO and plan manager, effective immediately.
The leadership shakeup takes place amid a formal review of the investment organization’s governance, including decisions around a $1.6-million vacation payout to Dobson and a workplace relationship between the CEO and an employee at the CAAT. The review is expected to be completed later this month, according to a statement by the organization.
The CAAT is also appointing Audrey Wubbenhorst as chair of the board and Janet Greenwood as vice-chair. Last week, former board chair Don Smith was removed from his position and former vice-chair Kareen Stangherlin resigned as a CAAT trustee following allegations of improper executive compensation approvals.
Read: CAAT pension plan board chair removed amid ongoing governance emergency
According to a report by the Globe and Mail, the vacation payout to Dobson was made as compensation for unused time off and was the third such payment he received over a period of several years. It also noted the board approved these payments despite guidelines that limit how much vacation time employees can carry over or have paid out.
“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,” said Wubbenhorst in a statement from CAAT.
“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.”
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.
Read: CAAT pension plan’s board chair suspended following senior executives’ departure