Former prime minister Stephen Harper is reportedly being considered as the chair of the Alberta Investment Management Corporation following the provincial government sacking the entire board and CEO on Nov. 7.
Sources told Postmedia that Alberta Premier Danielle Smith had supported Harper’s potential appointment for a while. However, concerns about his business activities allegedly needed to be addressed before proceeding. No wrongdoing was suggested, but there were potential conflicts of interest.
AIMCo is one of Canada’s top ten largest pension funds and is responsible for managing over $160 billion in assets, with a 7.3% ten-year annualized rate of return. The pension saw an $8.9 billion net investment return in 2023.
Some of the managed assets include the Alberta Teachers’ Retirement Fund, the Local Authorities Pension Plan, and the Public Service Pension Plan.
The pension fund operates independently from the province.
However, after firing the entire board, Alberta Finance Minister Nate Horner was appointed the sole director and chair until a new one could be appointed within 30 days. He was not to make any investment decisions or receive compensation during this time.
“The corporation has seen significant increases in operating costs, management fees, and staffing without a corresponding increase to return on investment,” reads the press release.
The Alberta government cited that between 2019 and 2023, AIMCo’s third-party management fees increased by 96%, the number of employees increased by 29%, and the salary, wage, and benefit costs increased by 71%. The increases came despite managing a smaller percentage of funds internally.
Ray Gilmour, a senior public servant in the provincial government for over five years, was named interim CEO the day after the board’s firing, on Nov. 8. Over the past five years, Gilmour oversaw an organization with more than 29,000 employees and a $73 billion budget.
“Ray has been the most trusted official in the province under three premiers. I have complete confidence in his ability to get costs at AIMCo under control and restore stability to the corporation,” said Horner.
True North asked the finance minister to confirm whether Harper would chair AIMCo.
“Alberta’s government will be announcing the new chair of AIMCo within the next couple weeks,” the finance ministry told True North.
Harper served as Canada’s 22nd prime minister from 2006 to 2015 over three terms.
He was one of the founders of the Reform Party of Canada and negotiated the merger of the Canadian Alliance with the Progressive Conservative Party of Canada to form the Conservative Party of Canada.
When Harper was elected in 2004, he was the Conservative Party’s first leader.
The former prime minister now serves as the chairman and CEO of Harper & Associates Consulting, working in the financial services, technology, and energy sectors, providing advice and counsel to business leaders.