A spokesperson at the Ontario-based Plan told the Globe and Mail a governance review is underway
A governance crisis is unfolding at CAAT Pension Plan, following concerns raised by senior executives about an unusually large payout to CEO Derek Dobson, according to the Globe and Mail.
Board chair Don Smith has been suspended from his position by the Ontario Public Service Employees Union (OPSEU), which appointed him as a trustee. The suspension came after three senior executives - chief investment officer Asif Haque, chief financial officer Mike Dawson, and chief pension officer Evan Howard - abruptly left the organization on January 19, according to the Globe.
OPSEU spokesperson Emily Visser confirmed the trustee suspension but stated the union has been reassured of CAAT's strong financial health.
The departures followed internal disputes over two key issues: a $1.6-million vacation payout to Dobson approved by the board in November 2024 in lieu of unused vacation time, and a workplace relationship between Dobson and a CAAT employee that trustees sanctioned.
Both decisions were overseen by Smith.
According to sources cited by The Globe, the three executives warned board members they had lost faith in Dobson's leadership, but the board stood by the CEO and negotiated exit terms for the departing executives.
CAAT has experienced additional leadership turnover recently. Their chief human resources officer departed in June, while the senior vice-president of technology and IT services management and the head of policy and government relations left earlier this year, according to the Globe.
The Financial Services Regulatory Authority of Ontario (FSRA) told the Globe they are now reviewing the situation for potential governance failures.
Meanwhile, CAAT spokesperson Stephen Hewitt confirmed the pension plan has appointed an independent expert to conduct a governance review.
To fill the Plan's critical roles, CAAT has since promoted 17-year veteran Kevin Fahey to the role of CIO and appointed former trustee Scott Blakey as an interim executive vice president.
CAAT serves approximately 125,000 members across Ontario's colleges and more than 800 public- and private-sector employers. Despite the upheaval, the Plan remains financially stable with a 124-per cent funding ratio, according to the Plan’s most recent disclosures.
