Tim Patterson, OMERS executive, and Wrongful Dismissal

Former OMERS executive files $65 million wrongful dismissal lawsuit

Tim Patterson, a former Private Equity senior managing director at Ontario pension fund OMERS, is claiming wrongful dismissal after recently being let go. He is seeking $65 million in damages from the fund for allegedly letting him go for disagreeing with funding cuts the company was making. Eight other employees also resigned in reaction to those changes.

Patterson was with OMERS until this past January, after being recruited away from CAI capital in 2010. He was responsible for gains of up to 60 per cent of the funds income over the past eight years. In 2020 he oversaw a loss of 2.7 per cent to the fund, and the Canadian Union of Public Employees of Ontario called for a third-party investigation, citing the funds benchmark of 6.9 percent for typical gains in a year.

OMERS changed long-term incentive plan

OMERS Private Equity group has a long-term incentive plan, which was instituted in 2013 and gave investment professionals at the fund a portion of the profits, provided they meet certain targets. That target was an 8 per cent bench mark, but in 2013, the lawsuit alleges, OMERS tried to change the incentive plan and introduce an earnings cap. In 2019 they lowered the share of earnings for investment professionals to 5 per cent on deals where OMERS was the majority investor. Patterson claims that he signed off to the 2019 changes based on a promise from Chief Investment Officer Satish Rai that there would be no more changes to the plan in the future that would affect their earnings.

However, OMERS rewrote the plan again in February of 2020. The new criteria for investment goals was set to an 8 per cent benchmark and allowed no earnings or incentive for investment professionals who did not meet those targets. Under the plan, employees might actually owe OMERS money if they didn’t meet their targets.

At that point Patterson and nine other employees refused to agree to the plan, and demanded it be redrafted. As a result, OMERS created what they called a “bridge plan” – but that only further reduced employee compensation. Patterson alleges that they were pressured to sign off on that plan as well. According to him, OMERS planned to fire them if they did not agree to sign the plan, and that other employees were terminated after refusing to go along with the “bridge plan”.

What is a Wrongful Dismissal?

A wrongful dismissal occurs when an employee’s employment relationship is terminated by the employer without providing reasonable notice. Notice to employees is generally provided by way of a full severance package – as much as 24 months’ pay.

How much severance am I owed?

Severance pay in Ontario is based on a number of factors including age, type of job or position, length of employment, and availability of similar employment. Other factors can include bonus or commission.

Use our Severance Pay Calculator to get an estimated amount of severance you might be owed.

Companies will often offer a severance package that falls well short of the compensation an individual should receive. They count on most people to sign off on the first offer they receive. You are not legally required to accept an employer’s severance offer by a set deadline. In fact, you have up to two years from the moment you lose your job to file a wrongful dismissal claim for what you are actually owed.

Employment lawyers for C-suite executives

Contact an employment lawyer at Samfiru Tumarkin LLP BEFORE you accept a severance offer. Our respected legal team has represented tens of thousands of clients in Ontario, Alberta and British Columbia, including many individuals in executive or C-suite positions like former OMERS senior managing director Tim Patterson. Severance packages for executives can involve various nuances and complexities that a skilled employment lawyer can navigate.