Doug Guzman, CEO of the Defence Investment Agency, is seen at the Canadian Association of Defence and Security Industries annual defence industry trade show CANSEC, in Ottawa, in May.Justin Tang/The Canadian Press
Former banker Doug Guzman told staff in a mass e-mail Sunday that he remains chief executive officer of the Defence Investment Agency and has no intention of quitting, despite reports he was frustrated and ready to leave.
Mr. Guzman took the helm of the new defence agency last November, and his exit after less than one year would have been a blow to Prime Minister Mark Carney’s government, which created the agency to speed up military purchasing amid a broader sovereignty push.
In a message titled “Rumours of My Departure Have Been Greatly Exaggerated,” Mr. Guzman’s Sunday e-mail to Defence Investment Agency employees also denied he has been aggrieved by the pace of government bureaucracy in getting procurement projects moving and approved.
The Globe and Mail, citing two sources, reported on Aug. 31 that Mr. Guzman was expected to depart the DIA post after growing frustrated with bureaucratic delays stalling defence procurement decisions. The Globe also reported Mr. Guzman was in discussions with the Prime Minister’s Office about his future.
Mr. Carney recruited Mr. Guzman, a close personal friend, from the Royal Bank of Canada, where he was deputy chair. He was named the first chief executive officer of the DIA as the government significantly boosted spending to rebuild the Canadian Armed Forces.
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Mr. Guzman in his Sunday e-mail missive said he felt he has to put an end to speculation about his role. “It seems there is a new headline about me every day,” he said.
“I have not resigned. I have not had discussions about leaving the Defence Investment Agency or the Government of Canada,” he said, adding later in the e-mail: “I remain the CEO of the DIA.”
He told staff it’s too early to leave.
“About a year ago I agreed to join the Government to lead the establishment of the DIA. As a team, we have made considerable progress, but we have not completed that task. And so, neither have I.”
Mr. Guzman also rejected the suggestion he’s aggrieved by “ ‘the inflexibility of the bureaucracy’ and our pace of execution.” He said “that does not reflect my view at all,” adding “we all have frustrations, but those particular ones are not mine.”
On the contrary, he added, “we are working well with other teams with flexibility and executing at speed.”
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The DIA confirmed Sunday that Mr. Guzman’s all-staff e-mail, which was circulated almost two weeks after The Globe first reported on his potential departure, was genuine. It went to staff not only at the DIA but also public servants working on defence procurement at the Department of National Defence, Public Services and Procurement Canada, and Innovation, Science and Economic Development Canada.
Mr. Guzman also addressed reports about his use of the phrase “triangle of inertia” in regards to defence procurement. This, he said, was the original assessment of a problem the DIA is mandated to address.
“My reference to a ‘triangle of inertia’ is a diagnosis of the prior system we were created to improve. It is not a description of the present, a criticism of our past or of our people or partners across government.“
Mr. Guzman played a key role in Mr. Carney’s July decision to purchase up to 12 submarines from German company TKMS for the Royal Canadian Navy.
He said he’s proud of what he and his team have already accomplished.
“In less than a year, we have advanced significant acquisition decisions across every domain, from submarines and Arctic radar to rifles, aircraft support, space surveillance, drones and secure satellite communications.”
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“More importantly, we are changing how Canada approaches defence investment,” he wrote.
Mr. Guzman earns more than $577,000 a year – not counting performance pay – as CEO of the DIA. At RBC, Mr. Guzman’s compensation was $9.23-million in 2024 and $7.56-million in 2023.
In his e-mail, he said the rules and procedures that governed Canada’s defence procurement were developed in a different era.
“Over time, processes designed for good reasons accumulated layers of approvals, checks, and consensus requirements. There were too many parties with veto rights. In a different world, that approach made sense,” he said.
Now, Canadian defence purchasing needs to be more agile, Mr. Guzman said.
“In today’s security and economic environment, Canada must make more complex decisions with greater speed, strategic purpose, and a ‘risk aware’, not ‘risk avoiding’ approach.”
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The Globe, citing sources, had reported it was possible Mr. Carney would ask Mr. Guzman to instead lead the Canadian operations of a new global defence bank the Prime Minister has been championing. Mr. Carney has been promoting the Defence, Security and Resilience Bank (DSRB) as part of his call for “middle powers” to combat what he sees as the fracturing of the traditional United States-led international order.
Mr. Guzman, without referencing the defence bank, acknowledged he talks to government about where he could best serve Canada.
“Over a year ago, I offered to join government to contribute wherever I could add value, whether in a single role or across multiple areas. Obviously, we agreed on the role of CEO of the DIA, where I remain. I did, at the time leave open my offer to contribute in other areas, if that made sense,” he wrote.
“Like other senior leaders, I have continued to have periodic conversations about government priorities and where I can contribute. That is neither unique to me nor a recent development. Perhaps those conversations have led some to jump to erroneous conclusions, grasping for headlines.”
Mr. Guzman’s e-mail appears intended to reassure staff and smooth over relations with partners elsewhere in government.
“As to the pace of our execution, the tale of the tape speaks for itself: ten significant announcements in ten months, including Canada’s largest ever procurement announcement – naming TKMS as Preferred Supplier for Canada’s submarine program – along with Canada’s largest ever accompanying package of economic benefits.”
He said the “triangle of inertia” is not a description of public servants.
“To be clear about one other item: the ‘triangle’ refers to a structure, not to its people,” he said. “Changing a system of this scale is difficult. If it were easy, there would have been little reason to create the DIA – to centralize decision rights in a single entity, addressing the triangle.”