Sweeping changes at Aimco as Alberta asserts control, targeting costs and leadership stability
Evan Siddall, the former CEO of Alberta Investment Management Corporation (AIMCo), initiated a team-building exercise with senior staff at The Westin Edmonton.
As reported by BNN Bloomberg, the exercise, led by The Moth, aimed to teach staff “how to lead from a place of joy.”
However, this meeting marked the beginning of significant upheaval. The intervention heightened employee concerns over job security and compensation, with some fearing AIMCo would be treated like a state agency, leading to pay reductions.
The concerns among staff grew as senior leadership turned over. Under Siddall, a chief legal officer and a chief corporate officer departed, with four different individuals holding the chief investment officer role over three years.
The most recent CIO, Marlene Puffer, exited in September amid pressure from the Alberta government. AIMCo has also been without a permanent chair since last year, and its audit committee chair left in April.
Finance Minister Nate Horner directly intervened, dismissing Siddall and three other executives, including the chief legal officer, chief of staff, and chief people, culture, and engagement officer. These individuals did not work on investments directly.
Horner also dismissed AIMCo’s entire board and assumed the roles of chair and sole director. According to a government statement, the decision aimed “to restore confidence in the agency” with a new CEO and board.
The public dismissals reinforced Alberta’s intention to realign AIMCo with provincial priorities. The government plans to overhaul the firm and reduce costs, with potential board leadership from former Prime Minister Stephen Harper.
AIMCo manages about $169bn in public pension plans and government funds, including royalties from Alberta’s oil and gas sector. Critics argue Siddall’s leadership style conflicted with Alberta’s fiscally conservative culture.
During his tenure, corporate, non-investment functions grew, and prominent expenditures drew attention.
A New York office was established in One Vanderbilt, despite staff suggesting cheaper alternatives, and a Singapore outpost opened to focus on Asia-Pacific investments, which comprised 3 percent of AIMCo’s total assets last year.
Siddall also undertook a renovation of the London office to accommodate additional staff.
AIMCo spent $276m on salaries, wages, and benefits in the last fiscal year, awarding Siddall over $4.5m in direct pay. Staff costs rose 71 percent, and headcount increased by 29 percent from 2019 to 2023, as reported by Horner’s office.
Third-party management fees grew by 96 percent over the same period.
AIMCo also awarded BlackRock Inc. a multi-million-dollar contract for portfolio management software Aladdin, which drew mixed reactions internally.
While some viewed it as necessary, others saw it as excessive.
An internal study by CEM Benchmarking revealed AIMCo’s costs ranked in the lowest third compared to peers in 2022, with expenses 23 percent lower than average.
Despite employee morale improving and AIMCo outperforming benchmarks in two of Siddall’s three years as CEO, his leadership faced criticism.
Siddall’s positive stance on green investing and emphasis on diversity initiatives, such as hiring a chief people officer, clashed with Alberta’s priorities.
He also introduced a $1bn energy transition fund for investments in “low-carbon renewable energy production,” which CIO Puffer was set to lead.
Premier Danielle Smith, a conservative and vocal supporter of Alberta’s oil and gas industry, has publicly opposed federal emissions rules.
Under Siddall, AIMCo’s global expansion and decarbonisation strategies drew concerns from provincial politicians. Some saw the direction as misaligned with AIMCo’s principles, while others defended the fund’s efforts to modernise.
The recent purge underscores growing tension between Alberta’s government and the autonomy of pension fund managers.
Pension expert Alexander Dyck from the University of Toronto commented, “No well-run firm replaces all of its executive team and whole board at once. That’s a recipe for disaster.”
He warned that excessive political interference could destabilise Canada’s pension management model.
