Derek Dobson, the embattled CEO and plan manager of the CAAT Pension Plan has resigned and agreed to repay his controversial 2025 vacation payout to the organization.

CAAT said it reached a settlement agreement with Dobson that brings closure to his employment with the plan. The resignation takes effect immediately, with both Dobson and the CAAT Board of Trustees acknowledging the need to move forward in a way that supports the long-term health of the pension plan and its beneficiaries.

Dobson’s departure comes after he was placed on administrative leave and his $1.6-million 2025 vacation pay drew the ire of former CAAT executives who departed the organization, as well as board members.

CAAT also thanked the Financial Services Regulatory Authority of Ontario for its “constructive engagement” as the plan works to strengthen its governance and oversight.

The organization simultaneously unveiled a new senior leadership team that will report to Acting CEO and Plan Manager Kevin Fahey, who will also continue to serve as chief investment 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 while leveraging their strong internal relationships to engage and inspire our teams as they serve our member constituents every day,” said Fahey.

The five leaders are Laura Foster, appointed interim chief financial officer; Jillian Kennedy, named chief operating officer; James Fera, who becomes chief legal officer and general counsel; John Baiocco, appointed senior vice-president of funding and sustainability; and Stephen Hewitt, the new senior communications director. A search for a chief human resources officer is ongoing.

“On behalf of the board, I’d like to thank Kevin for his strong leadership since his appointment as the plan’s acting CEO and the impressive progress he has made in a very short period of time,” said CAAT Board Chair Audrey Wubbenhorst. “The board continues to focus on its work in the best interests of members and I would also like to express our gratitude to all of our stakeholders for their ongoing trust and confidence in the plan.”

Wubbenhorst recently succeeded Don Smith after the Ontario Public Sector Employees removed him as chair. Smith had been OPSEU’s representative on the board. He was removed after other board members and CAAT executives became concerned about the $1.6-million vacation payment provided to Dobson amid questions regarding whether he was eligible for it in accordance with CAAT’s compensation policy. Prior to being removed, Smith was suspended.

The board and executives were also concerned about a board-sanctioned consensual relationship that Dobson had with a CAAT employee, according to multiple reports. He had disclosed the relationship previously to the board and CAAT employees.

CAAT said it remains one of Canada’s most well-funded pension plans, with its most recent independent valuation showing a 124% funded status. The plan manages more than $23 billion in assets and holds more than $6 billion in funding reserves.

Established in 1967, CAAT is an independent, jointly governed defined benefit pension plan that serves more than 800 participating employers across 20 industries and about 125,000 members.

Photo: CAAT