CPP Investment Board chief discusses

By John Craig | March 11, 2004 | Last updated on March 11, 2004
3 min read
  • The federal finance minister appoints directors from the nominating committee’s list after consulting the provincial finance ministers.
  • Once a year, directors evaluate the effectiveness of the board of directors, including assessing that “there has been no inappropriate pressure brought to bear on the board, any director or management in the investment, procurement or recruitment decisions of the CPPIB.”
  • The board chair asks the directors if any federal or provincial politician has tried to influence them.
  • The board of directors hire and, if necessary, fire the CEO, not the other way around.

    MacNaughton also identified disclosure as another cornerstone of good governance. “Full and timely disclosure is central to our governance model… and it is unusual in its depth and frequency,” said MacNaughton, noting that the CPPIB files an annual report in Parliament through the federal minister of finance, files quarterly financial statements with federal and provincial finance ministers and holds public meetings every two years in the nine provinces that participate in the CPP.

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  • MacNaughton added that his organization also meets with groups interested in the CPP and its investment activities, releases its financial statements every quarter to the media and posts them online on the CPPIB Web site. The organization’s investment holdings are also posted online on a quarterly basis.

    “No other pension fund discloses as much as we do… let alone quarterly,” said MacNaughton. “We do it because we believe that good disclosure is a part of good governance.”

    Ultimately, MacNaughton says his organization’s governance model is effective because it “rests upon a federal and provincial sharing of interests and checks and balances.”

    Filed by John Craig, john.craig@advisor.rogers.com.

    (03/11/04)

    John Craig

  • Qualified board candidates are identified and recommended by a nominating committee consisting of federally and provincially appointed members and a private sector CEO chair.
  • The federal finance minister appoints directors from the nominating committee’s list after consulting the provincial finance ministers.
  • Once a year, directors evaluate the effectiveness of the board of directors, including assessing that “there has been no inappropriate pressure brought to bear on the board, any director or management in the investment, procurement or recruitment decisions of the CPPIB.”
  • The board chair asks the directors if any federal or provincial politician has tried to influence them.
  • The board of directors hire and, if necessary, fire the CEO, not the other way around.

    MacNaughton also identified disclosure as another cornerstone of good governance. “Full and timely disclosure is central to our governance model… and it is unusual in its depth and frequency,” said MacNaughton, noting that the CPPIB files an annual report in Parliament through the federal minister of finance, files quarterly financial statements with federal and provincial finance ministers and holds public meetings every two years in the nine provinces that participate in the CPP.

    R elated Stories

  • CPP earns $3 billion in latest quarter
  • Inside edge: Dispelling the fear factor
  • MacNaughton added that his organization also meets with groups interested in the CPP and its investment activities, releases its financial statements every quarter to the media and posts them online on the CPPIB Web site. The organization’s investment holdings are also posted online on a quarterly basis.

    “No other pension fund discloses as much as we do… let alone quarterly,” said MacNaughton. “We do it because we believe that good disclosure is a part of good governance.”

    Ultimately, MacNaughton says his organization’s governance model is effective because it “rests upon a federal and provincial sharing of interests and checks and balances.”

    Filed by John Craig, john.craig@advisor.rogers.com.

    (03/11/04)