In an era when issues of corporate governance continue to make headlines around the world, we are fortunate to be operating within a governance structure, enshrined in legislation, that was carefully designed to support our distinct mission. We are a professional investment management organization, operating in the private sector world of financial markets, with strong public sector accountability.
Our governance structure has received international acclaim as a model for national pension plans. We operate independently of the Canada Pension Plan and at arm’s length from the federal and provincial governments that are jointly responsible for the CPP.
Oversight of the Canada Pension Plan Investment Board (CPP Investments) is provided by an independent Board of Directors. This Board, not governments, approves investment policies and makes critical operational decisions, such as the hiring of the President and Chief Executive Officer and the setting of management compensation.
Our Senior Management Team, hired and led by our President and CEO, makes portfolio decisions within policies agreed to by the Board of Directors.
Changing the legislation governing CPP Investments requires the cooperation of the stewards – the federal and provincial Finance Ministers who oversee the CPP. This process mirrors the constitutional amending formula and requires agreement among the federal government and two-thirds of the provinces representing two-thirds of the population.