January 9, 2002
The CPP Investment Board announced today that much of the credit for it winning Canada’s leading governance award belongs to the federal and provincial finance ministers for introducing an innovative board nomination process in 1997.
The federal crown corporation won the Conference Board of Canada/Spencer Stuart 2002 National Awards in Governance for the public sector.
“The process for selecting our directors was the brain child of the federal and provincial ministers when they decided to create the CPP Investment Board as an investment organization at arm’s length from governments,” commented CPP Investment Board Chair Gail Cook-Bennett. “They also inserted in our legislation the requirement that the board have a sufficient number of directors with proven financial ability or work experience relevant to investing.”
The nominating process involves a committee chaired by a private sector executive. Each government participating in the Canada Pension Plan appoints a member to the committee which selects eligible board candidates. The nominating committee’s list is submitted to the federal finance minister, who appoints the directors in consultation with his provincial counterparts. ”The selection process is the foundation on which our board of directors has been able to develop effective governance practices,” Dr. Cook-Bennett added. The CPP Investment Board is a crown corporation created by an Act of Parliament in December 1997. It invests funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested only in equities to balance the bond portfolio owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Plan to keep its pension promise to Canadians. The CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.
For further information contact:
Gail Cook-Bennett, Chair – CPP Investment Board 416 868-4075 OR John MacNaughton, President and Chief Executive Officer – CPP Investment Board 416 868-4075