Toronto, Feb 13, 2026, 12:34 (EST)
- CAAT Pension Plan placed CEO Derek Dobson on administrative leave. CIO Kevin Fahey steps in as acting CEO.
- The board tapped a new chair and vice-chair while its independent governance review remains underway.
- Concerns over a $1.6 million vacation payment to Dobson set off the review.
CAAT Pension Plan said Friday it has placed CEO and plan manager Derek Dobson on immediate administrative leave, shifting chief investment officer Kevin Fahey into the acting CEO role. The board’s move comes as it tries to “restore stakeholder trust” after questions surfaced over a $1.6 million vacation payout awarded to Dobson. Governance is now under review, the board added. 1
CAAT maintains that the governance issues have no impact on the plan’s financial stability or pension payments. As of its Feb. 5 update, the plan reported a 124% funded status, assets topping $23 billion, and upwards of $6 billion set aside in funding reserves. 2
CAAT operates a defined benefit pension plan, locking in set retirement payouts instead of tying them to market swings. Questions about executive compensation or oversight? Sponsors and members usually look for quick responses.
The board handed the chair role to Audrey Wubbenhorst and named Janet Greenwood vice-chair, ousting Don Smith and Kareen Stangherlin. Wubbenhorst described the decisions as “in the best interests of the Plan,” adding that Fahey was the right fit for navigating a “period of significant change.” CAAT expects its independent review to wrap up later in February. 3
Smith lost the chair position last week following a suspension tied to claims of improper approval of executive pay, according to Benefits Canada, which referenced a Toronto Star story. The governance review is now looking into the vacation payout, as well as choices made about a workplace relationship between the CEO and another employee, the outlet noted. Level Chan, partner at Stewart McKelvey, weighed in: “The contract would depend — particularly when you’re talking about a CEO — on whether there would be specific terms governing that vacation.” 4
CAAT, established in 1967 to serve Ontario’s college system, is run by a board of trustees chosen by both employers and employees. The plan has grown to include upwards of 800 employers and roughly 125,000 members.
The review might still lead to stricter requirements on pay approvals and conflicts of interest. More leadership changes can’t be ruled out either. If sponsors or members start losing confidence, the fund’s push to bring in new employers could hit a snag.
The board hasn’t specified Dobson’s timeline for returning from leave, or if the review might trigger additional steps. For now, Fahey is set to handle the plan.
CAAT intends to consider the review’s recommendations alongside industry best practices, but says its primary concern remains benefit security.
