Michael Sabia is the new president and CEO of Caisse de dépôt et placement du Québec, the pension fund announced Friday.

Sabia will take up his duties immediately.

Sabia was president and CEO of BCE Inc. from 2002 to July 2008, after serving in other senior positions within the group. Previously, he was CFO at CN when the railway was privatized and then taken public. He began his career with the federal Finance Department and later served as Deputy Secretary with the Privy Council Office in Ottawa.

“We’re very pleased that Mr. Sabia has accepted this challenge, and that we can draw on his financial acumen and experience as a senior corporate executive,” said Robert Tessier, chairman of the Caisse.

The Caisse has come under fire for losing nearly $40 billion in 2008.

“I’m eager to join its hundreds of dedicated employees and to work with them to restore Quebecers’ pride in the institution,” said Sabia.

On behalf of the board, Tessier expressed his sincere thanks to Fernand Perreault for the excellent job he did in recent months, on short notice, as interim resident and CEO. “Mr. Perreault demonstrated an exemplary sense of duty and the utmost commitment to the institution,” he said.

Perreault, executive vice-president of real estate for the Caisse, was appointed interim CEO after Richard Guay resigned in January.

The Caisse manages funds primarily for public and private pension and insurance plans. As at Dec. 31, 2008, it held $120.1 billion of net assets.

IE