A governance crisis has rocked the CAAT Pension Plan, leading to a series of dramatic leadership changes. The plan's CEO, Derek Dobson, has been placed on administrative leave, effective immediately, following concerns raised by top executives about his conduct and the oversight of the board of trustees. This move has sparked multiple investigations into potential governance failures.
Kevin Fahey, the newly appointed acting CEO and plan manager, steps into the role with a wealth of experience, having worked at CAAT for over 16 years. He takes the reins as the plan's new chair, Audrey Wubbenhorst, and vice-chair, Janet Greenwood, are also announced. This follows the removal of previous board chair Don Smith by the Ontario Public Service Employees Union (OPSEU), which appointed him, after The Globe and Mail reported on concerns about board oversight and decision-making.
The previous vice-chair, Kareen Stangherlin, has also resigned as a CAAT trustee. Ms. Wubbenhorst stated that these changes are necessary to restore trust in CAAT's leadership and governance. She highlighted Mr. Fahey's expertise and ability to navigate the organization through this period of significant change.
However, just last week, a CAAT spokesperson expressed the board's confidence in Mr. Dobson's leadership. But sources reveal that the board met on Wednesday evening, leading to these latest developments. The Globe has chosen not to identify these sources due to their unauthorized discussion of internal matters.
CAAT, a multiemployer pension plan serving Ontario's colleges and over 800 public and private sector employers, has been through a turbulent time. Mr. Dobson, who has been CEO since 2009, faced scrutiny over a $1.6 million vacation payment that contradicted company policy and his handling of a personal relationship with a CAAT employee. This payment, made as compensation for unused time off, was the third of its kind, despite internal guidelines limiting such payouts.
The board's decision to allow Mr. Dobson's workplace relationship to continue, with guardrails to prevent conflicts of interest, caused tension among staff. An external expert hired in December is conducting a governance review, expected to conclude later this month. CAAT's statement assures that these governance issues do not impact the plan's financial health or its ability to provide secure pensions.
The plan's most recent financial disclosures indicate a funded status of 124%, meaning it has $1.24 in assets for every dollar expected to be paid in pension benefits. The Financial Services Regulatory Authority of Ontario has also been investigating the situation, speaking with employees in recent weeks.
With Mr. Dobson on leave, nearly all of CAAT's senior leadership team has changed or left in the past four weeks, leaving a leadership void. This period has been jarring for CAAT, as Mr. Dobson was the public face during a period of ambitious expansion. Morale has taken a hit as long-serving leaders departed with little explanation.
"We've gone through a lot recently, and many CAATsters have understandably been upset," the plan stated in an internal email. "The board believes this change is the best way to restore stability."
The turmoil at CAAT first surfaced internally in November, when three top executives approached the board with governance concerns. These tensions became public in January when these executives abruptly left the plan. CAAT promoted Mr. Fahey to CIO and appointed Scott Blakey as interim executive vice-president and chief people and culture officer, while Jillian Kennedy remained as chief strategy officer.
This governance crisis has sparked a significant overhaul of CAAT's leadership, leaving many wondering about the plan's future direction and the potential impact on its members. What do you think about these dramatic changes? Should governance concerns take precedence over stability in leadership? Share your thoughts in the comments below!
