Top Canadian Bank's CFO Fired Over 'Undisclosed' Workplace Relationship

The Royal Bank of Canada (RBC), Canada's largest bank, has made headlines with the abrupt dismissal of its Chief Financial Officer, Nadine Ahn. The termination follows an internal investigation into allegations surrounding Ahn's undisclosed personal relationship with another employee, as reported by the New York Post. Ahn started her career with Royal Bank in 1999. Over the years, she held various positions in treasury, risk management, investor relations, and other financial departments. She was appointed as the Chief Financial Officer in September 2021.

Allegations and Investigation 

On April 5, 2024, RBC officially announced its decision in a press release  to terminate Ahn's employment, citing violations of the company's code of conduct. The investigation, triggered by unspecified 'allegations' against Ahn, revealed her involvement in a 'close personal relationship with another employee', leading to preferential treatment of the said employee, including advancements in promotion and compensation. RBC clarified that the investigation didn't find any evidence of financial wrongdoing related to the bank's financial records. However, it considered Ahn's actions a direct breach of its code of conduct.

As per RBC's code stated in the press release, 'While we are all held to the high ethical standards set out in our values and the code, those of us who are people managers are accountable for leading by example'' including by ''being respectful, transparent, and fair in all relationships''.

Following the investigation's conclusions, both Nadine Ahn and the other involved employee, identified as Ken Mason, a vice president and head of capital and term funding with 23 years of service at RBC, faced termination of employment. After Ahn's departure, RBC has chosen Katherine Gibson, the senior vice president of finance and controller, to step in as the interim Chief Financial Officer. Gibson's extensive experience in overseeing global teams and strategic business initiatives makes her a valuable addition to the role.

While the details surrounding Ahn's dismissal are mostly kept within RBC, industry experts are discussing the possible effects on RBC's reputation and workplace culture.