CEO of large pension plan resigns, agrees to repay $1.6M vacation payment

Derek Dobson is shown in this handout photo. (Waterstone/Canada's Most Admired)

The CEO of a Toronto-based pension plan has resigned and has agreed to repay a $1.6 million vacation payment that he received for 2025, CTV News has learned.

The Colleges of Applied Arts and Technology (CAAT) Pension Plan said in a news release on Friday that CEO and Plan Manager Derek Dobson “will leave CAAT effective immediately, and repay his 2025 vacation payout to CAAT.”

The CAAT said that the settlement agreement “brings closure” to Dobson’s employment at the Plan.

A spokesperson for CAAT, however, told CTV News that it could not comment on the agreement further as “settlement terms are confidential.”

Dobson’s departure comes after CAAT undertook an independent governance review on Feb. 5 after “becoming aware of concerns related to a vacation payment to the plan’s CEO.”

Dobson was placed on an administrative leave one week later on Feb. 13.

“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,” Friday’s news release states.

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

CAAT also announced a new leadership team on Friday that it said would help “restore stakeholder trust” while the independent review continues.

CAAT has more than $23 billion in assets and more than $6 billion in funding reserves.

The pension plan says that it has more than 100,000 members across Canada.