CPPIB reaches into fund industry for new CEO

(December 15, 2004) The CPP Investment Board (CPPIB) has appointed a high-level mutual fund executive as its new CEO. Fidelity Canada president David Denison will join the CPPIB in January, replacing John MacNaughton.

MacNaughton, who has led the CPPIB since its inception in 1999, announced in May that he planned to step down at the end of the year. The CPPIB says it appointed Denison following a “rigorous” six-month search process, using a global executive search firm.

“David Denison is a seasoned executive with two decades of experience within global financial services organizations, and an impressive record of accomplishment,” said board chair Gail Cook-Bennett in a statement. “His integrity, broad management experience and success in strategy execution are precisely the qualities that the board sought in a new CEO.”

“We believe David is ideally suited to lead the next stage of development at the organization,” she added in a conference call.

MacNaughton says Denison is “highly regarded and ably prepared to lead this organization in the years ahead and I wish him well.”

“Being selected to lead the CPPIB is a very exciting opportunity and especially at this important stage at the organization’s development,” says Denison. “Under John’s leadership, the CPPIB has grown from a virtual start-up to an organization that now oversees a $75 billion reserve fund. My job will be to prepare the board for the next level of growth.”

Denison admits he was “headhunted” for the position but says it didn’t take a lot to pique his interest in the role, given its “unique and important stature within Canada.”

At Fidelity, there are mixed feelings over Denison’s departure. “There’s a high level of loyalty to David so we are certainly sad,” says company spokesperson Kim Flood. “However, we are also extremely proud and excited for him because this is a perfect fit for him and in a once-in-a-lifetime opportunity.”

Flood notes that Fidelity’s recently announced plan to lower its management fees on its entire lineup of front-end load funds will not be affected by Denison’s departure. “The fee reductions are critical and that’s part of David’s legacy. That’s our first priority to get that underway.”

Denison says he expects Fidelity to name his successor in the next month, before he leaves for the CPPIB on January 15. “We have a very talented management team in place within the organization and I will be working with chief operating officer Bob Reynolds in Boston to decide upon my successor and to complete that transition before I leave.”

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com