The CAAT Pension Plan is parting ways with chief executive officer Derek Dobson, who has agreed to repay a controversial $1.6-million vacation payout he received last year as he ends his nearly 17-year tenure at the helm of the plan.
CAAT said in a statement on Friday that “Mr. Dobson has tendered his resignation and will leave CAAT effective immediately” as part of a settlement agreement that “brings closure to his employment at the plan.”
Mr. Dobson was placed on administrative leave last month after concerns about his leadership and the board’s oversight of his actions caused upheaval in the senior ranks of the $23-billion fund. This ultimately led to a governance crisis that has prompted an overhaul of the plan’s management.
The terms of the settlement agreement were not disclosed.
“Both Mr. Dobson and the CAAT board of trustees acknowledge the importance of moving forward in a manner that supports the long-term health of the plan and the beneficiaries it serves,” CAAT’s statement said.
Mr. Dobson said in an e-mail that he is leaving “with deep pride in what we accomplished together,” and remains “passionate about strengthening retirement income security for Canadians.”
“There is more important life-changing work to be done,” he added.
CAAT is a multiemployer pension plan that expanded rapidly during Mr. Dobson’s tenure, from $4-billion in assets to more than $23-billion today. It serves Ontario’s colleges and more than 800 public- and private-sector employers, with about 125,000 members. The Globe and Mail is a participating employer in CAAT since 2022. The plan is also in a surplus position, with $1.24 for every dollar of expected pension obligations in the future.
Tensions at CAAT hit a tipping point in November, 2025, when the plan’s chief investment officer, chief financial officer and chief pension officer wrote a letter to the plan’s board urging trustees to investigate several concerns they had about Mr. Dobson’s leadership and board oversight of his actions. Key among them was the $1.6-million vacation payment that Mr. Dobson is now returning, awarded as apparent compensation for his unused vacation time over multiple years, which was at odds with an internal policy.
The executives also raised concerns about a personal relationship that Mr. Dobson was having with a CAAT employee, and why it was allowed to continue, even as the board put guardrails in place to try and manage potential conflicts of interest.
The three executives left CAAT abruptly in late January, leaving its leadership in turmoil. CAAT’s board chair, Don Smith, was then replaced, and vice-chair Kareen Stangherlin resigned. The rest of the board, including trustees who initially stood by Mr. Dobson, are still in place.
CAAT is currently being led by acting CEO Kevin Fahey, who took over when Mr. Dobson was put on leave in mid-February. Mr. Fahey is also the plan’s chief investment officer – a role he assumed weeks earlier after the sudden executive departures.
Mr. Fahey recently promoted five employees to fill key roles in the wake of the recent management turnover, looking to existing staff to rebuild CAAT’s executive ranks.
Jillian Kennedy, the lone remaining member of the senior executive team that was in charge at CAAT at the start of the year, was promoted to chief operating officer, from her previous role as head of strategy.
Laura Foster is stepping in as interim chief financial officer, after leading CAAT’s audit team for the past year and a half as vice-president of aligned assurance.
James Fera is the chief legal officer and general counsel, and John Baiocco has been named senior vice-president of funding and sustainability, in charge of the fund’s actuarial team. Stephen Hewitt was appointed senior director of communications.
The plan still needs to hire a chief human resources officer.
“While the Plan has recently undergone a period of significant change, I am proud that these five senior leaders are all existing CAAT employees who will drive stability and institutional continuity,” Mr. Fahey said in a statement.
CAAT also thanked the Financial Services Regulatory Authority of Ontario – the regulator that oversees pension plans in the province – for “its constructive engagement” as the plan works to improve its governance and oversight. The Globe previously reported that FSRA was examining the upheaval at CAAT, though the regulator does not discuss its supervisory activities in public.