Former Canadian Prime Minister Stephen Harper
The government of the Canadian province of Alberta announced Wednesday that former Canadian Prime Minister Stephen Harper will be appointed as chairman of the board of the Alberta Investment Management Co. Harper’s appointment follows the dismissal earlier this month of the management company’s board and the firing of top executives, including CEO Evan Siddall, over what the government called concerns over rising costs at the fund.
The board will include Navjeet Singh ‘Bob’ Dhillon, Jason Montemurro and Jim Keohane, all of whom were part of the November 7 board dismissal. The shuffle has added government representation to the board, however, in the form of Kate White, Alberta’s deputy minister of finance, with her presence intended to “ensure more consistent communications between AIMCo and Alberta’s government.”
“This newly reconstituted board will oversee AIMCo’s effort to restore confidence and stability in Alberta’s investment management agency,” stated a government press release, which reiterated the United Conservative Party’s intent to “reset” the focus of the C$160.6 billion ($114.86 billion) pension fund.
“I am taking on this role, and doing so on a pro-bono basis, because I believe it is a meaningful act of public service to my adopted home province of the last 46 years,” Harper, who was born in Toronto but earned bachelor’s and master’s degrees in economics at the University of Calgary, said in a statement. “I also feel uniquely positioned to help the organization improve its governance. Over several decades, Canadian pensions have earned a global reputation thanks to professional operations, upstanding ethics and prudent risk management.”
Harper was elected as the first leader of the Conservative Party of Canada in 2004 and served as prime minister of Canada from 2006 to 2015. He co-authored the 2001 Alberta Agenda, which, among other things, recommended that the province withdraw from the Canada Pension Plan and start an Alberta Pension Plan. The current UCP government, led by Alberta Premier Danielle Smith, has been publicly making that case since last year.
Alberta Minister of Agriculture and Irrigation Nate Horner, who was appointed as the interim chair and sole board member following the dismissal of the former executives and board members, will return to his former duties.
In a prior statement, the Alberta government cited rising costs as a factor in the board’s dismissal. AIMCo’s salaries, wages and benefits had increased by 71.38% from 2019 to 2023, as the fund embarked on a global expansion, opening offices in locations such as Singapore, New York and Luxembourg.
During the same period, the number of employees at AIMCo increased 29%, while the percentage of internally managed funds decreased to 67% from 82%
In September, AIMCo CIO Marlene Puffer announced her resignation. Her duties were divided between two asset class heads, with no direct CIO named.
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Tags: Alberta Invesment Management Corporation, Alberta. AIMCo, Evan Siddall, Nate Horner, Stephen Harper