The United Conservative Party government of the Canadian province of Alberta on Thursday fired CEO Evan Siddall, additional executives and the 10-person board of the Alberta Investment Management Corp., which manages C$160 billion ($115 billion) in public funds and pensions. Rising costs were cited as the primary reason for the shake-up.
AIMCo, a Crown corporation, invests on behalf of more than 30 Alberta pension funds and endowments. It was founded in 2008 to consolidate and manage the province’s public sector investments. According to a statement from the Alberta government, the goal of the change is to “reset the investment corporation’s focus.”
On Friday, the government appointed the most senior deputy minister, Ray Gilmour, as the organization’s interim CEO.
According to Thursday’s statement, AIMCo salaries, wages and benefits increased by 71.38% between 2019 and 2023, to C$222.3 million from C$129.7 million. During the same period, the number of employees increased 29%, to 600 from 465. From 2019 to 2023, the percentage of funds managed internally by investment staff decreased to 67% from 82%.
In the interim, Nate Horner, the province’s minister of finance and president of the Alberta Treasury Board, will be sole director and chair of the pension fund’s board. A new board chair is expected to be appointed within 30 days, followed by a complete board restructuring.
“AIMCo’s work has direct consequences for Albertans,” Horner said in a statement. “While they have achieved returns for their clients, we are acting to bring a renewed focus on the best possible returns and low operating costs.”
In September, Marlene Puffer, AIMCo’s CIO, stepped down from her position. David Scudellari and Justin Lord, two AIMCo executives, were appointed as senior executive managing directors, filling the CIO role.
The fund has achieved returns of 8.0% and 7.2%, respectively, over the past four- and 10-year periods, as of the fund’s mid-year 2024 report, which tracked investment performance through June 30. The fund achieved a 5.4% year-to-date return, as of the mid-year update.
The dissolved board included Interim Chair Ken Kroner and Jim Keohane, the former CEO of the Healthcare of Ontario Pension Plan.
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Tags: AIMCo, Evan Siddall, Nate Horner, Tags: Alberta Invesment Management Company