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The CAAT Pension Plan has made changes to its governance procedures after a third-party review.Merle Robillard/The Globe and Mail
The CAAT Pension Plan is making changes to improve its governance over executive compensation, workplace relationships and succession planning after failures in the plan’s oversight spurred an abrupt overhaul of its senior leadership earlier this year.
In a letter to members and employers published on Friday, the board of trustees for the $25.4-billion pension plan said it made “enhancements” to its governance procedures after a third-party review, which began last December and concluded earlier this year.
CAAT did not release the full results of that review, which was led by Carol Hansell, the founder and senior partner of Hansell LLP. And the letter to members provides only a broad outline of the governance changes that have been implemented.
CAAT hired Ms. Hansell after some of the plan’s most senior executives, in a letter sent to trustees in November, 2025, urged the board to investigate instances where they felt governance controls had broken down.
Their concerns focused on the conduct of then-chief executive officer Derek Dobson. He had received a $1.6-million vacation payout as compensation for unused time off that was at odds with internal policies. He was also having a personal relationship with a staff member for more than a year, with the board’s approval.
After CAAT’s board initially stood by Mr. Dobson, three of the plan’s top executives left in January, with little explanation. After The Globe and Mail reported on internal tensions at CAAT, its board chair was ousted, its vice-chair resigned and Mr. Dobson left the plan as part of a settlement that required him to repay the $1.6-million payout.
CAAT is a multiemployer pension plan serving Ontario’s colleges and more than 800 public- and private-sector employers with about 125,000 members. The Globe has been a participating employer since 2022.
Friday’s letter to CAAT members and employers says the board took steps to “strengthen its oversight” of executive compensation, with improved transparency. CAAT’s 2025 annual report includes a table that discloses total pay to the plan’s senior executive team. But it does not reveal individual compensation levels as most other major Canadian pension plans have for years.
The letter refers to “planned compensation disclosure” for future years, without elaborating. In 2025, CAAT’s top leaders were paid a combined $9.73-million, including the $1.6-million vacation payment that was later repaid in 2026. That compared with $7.65-million in 2024.
CAAT’s board also said it has “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.
Earlier this year, CAAT initially said that Mr. Dobson’s relationship with an employee was in “full compliance” with policies that had been reviewed by external legal counsel. The board had planned to allow Mr. Dobson and the employee to stay in their roles, with measures in place that were intended to prevent conflicts of interest or the perception of favouritism.
On Friday, the board said it has “affirmed” that CAAT’s human-resources policies apply to all employees, regardless of their title or role, including those that relate to carrying over vacation days or claiming pay for unused days.
Mr. Dobson received reimbursements for accumulated vacation days despite internal company guidelines that stated vacation time must be used within one year after the year when it was earned, and capped payouts at five vacation days. Earlier this year, CAAT said the CEO had an employment contract that governed his pay and benefits.
“We believe clear, consistently applied policies will enhance accountability and fairness across the organization,” trustees wrote in Friday’s letter to members.
CAAT’s board is also “strengthening succession planning” for board and committee leaders, the CEO and senior executives, the letter said. In June, CAAT started a search for a permanent CEO, led by executive consulting firm Egon Zehnder.
The plan is currently led by interim CEO and chief investment officer Kevin Fahey, who oversees a revamped leadership team. A new board chair and vice-chair were chosen from the existing group of trustees earlier this year.
Finally, CAAT’s board said it will “continue to regularly review the skills and experiences of trustees to ensure the board maintains the expertise needed to meet its responsibilities and the regulatory expectations of the administrator of a pension plan of CAAT’s size and complexity.”
The board is divided between trustees appointed by the union that represents many college employees in Ontario, the Ontario Public Service Employees Union (OPSEU), and the College Employer Council, which advocates on behalf of educational institutions.
“Of course, good governance only gets stronger through ongoing improvement,” the board’s letter said.