The Alberta government has hired former prime minister Stephen Harper as the chairman of the Alberta Investment Management Corporation (AIMCo) board of directors less than two weeks after it sacked all 10 prior board members.
Harper’s hiring was announced via a news release on Wednesday morning in which Harper said he would not be paid for his new role, describing it as a “meaningful act of public service to my adopted home province of the last 46 years.”
“Over several decades, Canadian pensions have earned a global reputation thanks to professional operations, upstanding ethics and prudent risk management. I have accepted the role of board chair because I want to see AIMCo further embody these values and to positively contribute to this culture.”
Harper was born in Ontario but is a longtime Calgary area resident. He served as Canada’s 22nd prime minister between 2006 and 2015.
In announcing Harper’s hiring, Premier Danielle Smith cited her government’s goal of building the Heritage Savings Trust Fund to more than $250 billion in the next 25 years, with more details on how the government plans to make that happen to come before year’s end.
“His appointment … (is) a strong step forward in giving all Albertans confidence in the long-term sustainability and success of AIMCo.”
Finance Minister Nate Horner said he first spoke to Harper about the role “maybe half a year ago.”
“He said that if you would consider me, he would work his channels and see if he thought it was appropriate,” he said, noting Harper’s experience.
“Albertans should be grateful and thankful that he would consider doing this.”
Sudden sackings
AIMCo manages more than $160 billion in investments for 375,000 public-sector employees, with the majority of that money coming from public sector pension plans.
The Financial Post reported last week that the former prime minister was among those being considered to chair the board, and that AIMCo had previously attempted to set up a meeting between Harper and now-former CEO Evan Siddall though the two never met.
Siddall was suddenly removed from his duties by Horner while at an offsite gathering of AIMCo staff at the Westin Hotel in Edmonton after Horner had fired the entire board and installed himself as interim chair.
Siddall had not been accused of any wrongdoing and was not being pushed out by board members since taking on the role in 2021, four sources told the Financial Post.
Horner cited low investment returns and rising operating costs, management fees, and staffing when announcing the firings on Nov. 7, saying, “it was my determination it wasn’t going to change without a major reset.”
Former interim board chair Kenneth Kroner wrote a letter to Horner disputing what he termed an “incorrect narrative” and “misinformation” around AIMCo’s performance that he said will make the next board’s job more difficult.
“The data contradicts the very negative narrative that is out there.”
AIMCo ended 2023 with an investment return of 6.9 per cent, which fell below its benchmark return of 8.7 per cent.
The province’s most senior civil servant, executive council deputy minister Ray Gilmour, was appointed as interim CEO on Nov. 8.
Finance deputy minister appointed to board
The deputy minister of treasury board and finance will now also be a permanent AIMCo board member with the government citing the need “to ensure more consistent communications” between the investment agency and the provincial government.
Opposition finance critic Court Ellingson accused the government of turning AIMCo into a political entity rather than the arm’s-length organization it’s designed to be, adding the appointments send a “horrific message” to investors.
“Albertans don’t want politicians managing their hard-earned assets,” he said. “They expect leaders with proven expertise in managing global pension funds to oversee their future livelihoods.”
Horner defended the appointment as being “imperative” to oversight of AIMCo.
Three of the prior board members were also reappointed to their jobs on Wednesday, with Horner citing their prior work and desire to return — Mainstreet Equity CEO Navjeet Singh Dhillon, former pension plan CEO James Keohane, and tax lawyer Jason Montemurro.
Elections Alberta financial disclosure data shows Montemurro — who was appointed to the board last March — contributed $2,500 to Smith’s successful United Conservative Party leadership bid in 2022 as well as $4,300 to the party in 2023 and another $4,375 as of Sept. 30 this year.
Those appointments also end Horner’s time as interim board chair.
He said no other appointments will be made until they are discussed with Harper.
– with files from Barbara Shecter