The CAAT Pension Plan is undergoing a significant transformation, with a focus on improving governance and addressing the failures that led to a leadership overhaul earlier this year. This comprehensive review, led by Carol Hansell, has resulted in a series of changes aimed at enhancing oversight and accountability.
One of the key areas of focus is executive compensation. The plan's board has taken steps to strengthen its oversight of senior executives' pay, with a new annual report including a table that discloses total pay to the plan's senior executive team. However, it does not reveal individual compensation levels, which is a departure from most other major Canadian pension plans.
The board has also updated its workplace relationship policy to prohibit internal relationships involving the CEO or senior executives, regardless of whether there is a direct reporting line between the employees. This comes after concerns about the conduct of then-chief executive officer Derek Dobson, who was found to have a personal relationship with a staff member for more than a year, with the board's approval.
Succession planning is another area of emphasis. The board has initiated a search for a permanent CEO, led by executive consulting company Egon Zehnder, and is also strengthening succession planning for board and committee leaders, the CEO, and senior executives.
The CAAT Pension Plan serves Ontario's colleges and more than 800 public- and private-sector employers with about 125,000 members. The plan's board is divided between trustees appointed by the union that represents many college employees in Ontario and the College Employer Council.
In conclusion, the CAAT Pension Plan's governance review has led to significant changes aimed at improving oversight and accountability. While the plan's board has made progress, there is still work to be done to ensure that the plan's governance is robust and transparent. The plan's leadership team, including the interim CEO and chief investment officer Kevin Fahey, will play a crucial role in driving these changes forward.
