Judge says CPPIB pried into 'sensitive and personal' matters during investigation
A managing director at the Canada Pension Plan Investment Board (CPPIB), one of the world’s largest pension fund managers, has been awarded £25,000 (C$45,200) in damages after being dismissed for gross misconduct.
Simon Price, a senior figure within the CPPIB's active equities division, was terminated following the discovery that he had charged £11,700 (C$21,100) in personal expenses to his corporate credit card, according to the Financial Times.
The London Employment Tribunal, however, found that the organization had improperly investigated personal matters unrelated to his job performance.
The case stems from an incident in August 2023, when Price’s personal credit card was stolen during a trip to New York. According to tribunal filings, Price used his corporate American Express card to cover personal expenses, including British Airways flights to Albania and accommodation at a luxury hotel in Venice. The total amounted to £11,700.
Price explained that he had initially sought and received approval for these charges under the CPPIB’s “reverse expenses” system, where employees can charge personal expenses to the company card with the understanding that they will reimburse the company later, according to the Financial Times.
Employment Judge Davidson noted that Price’s manager had approved the reverse expense claim and appeared to have no concerns about the arrangement.
However, after the charges were made, Price was contacted by CPPIB’s human resources team in Canada, questioning the deduction and asking for further explanation. Despite repaying the full amount, Price was dismissed for gross misconduct in January 2024, said the Financial Times.
The tribunal highlighted the CPPIB’s handling of its inquiry into Price’s use of the corporate card, specifically criticizing the organization for delving into his private life. According to tribunal findings, CPPIB raised concerns over the fact that Price’s travel companion to Albania was not his daughter, as initially stated, but his girlfriend.
Price, who was going through a divorce, said that his family life was not something he wanted to discuss with people at the company he had never met, according to the Financial Times.
The tribunal judge accepted Price's explanation, with Judge Davidson stating, “I accept his evidence that he did not want to share information which he regarded as sensitive and personal.”
The judge further noted that Price had already repaid the funds in full and had no obligation to disclose details of his personal relationships, adding that such information was irrelevant to the case.
“He had repaid all the money in full and did not feel he wanted to go into the details of what he did and who he did it with.”
Judge Davidson also took issue with what appeared to be the CPPIB’s judgment of Price’s lifestyle choices, pointing out that these matters should not have factored into his dismissal, according to the Financial Times.
The company appears to “disapprove of the claimant’s lifestyle choices,” the judge wrote, stressing that such disapproval had no bearing on whether Price breached his contract.
“It is not for the respondent to suggest that he should stay at a more modest hotel in Venice,” Davidson added, defending Price’s decision to stay at a five-star hotel. “The claimant is a high earner and is entitled to spend what was, ultimately, his money as he saw fit.”
The tribunal ultimately concluded that Price’s actions did not amount to gross misconduct.
“There is no suggestion that he attempted to gain an advantage by using the corporate card,” Davidson stated in the ruling.
In light of the findings, the tribunal awarded Price £25,000 in damages, citing the CPPIB’s inappropriate intrusion into his private life. The CPPIB declined to comment on the tribunal’s decision or the specifics of the case, according to the Financial Times.
The CPPIB, which manages over C$632 billion (£352 billion) in assets for more than 22 million Canadians, has a significant presence in the UK, employing close to 250 people at its London office. Its UK investments include major holdings such as the Bullring shopping centre in Birmingham and student housing provider Unite Students.
Simon Price, who could not be reached for comment, had held a prominent position within the organization before his dismissal.
