Royal Bank of Canada dismisses CFO for “Undisclosed Close Relationship” with Another Employee

The bank named Katherine Gibson, its senior vice president of finance and controller, as the interim CFO of Royal Bank of Canada, the country’s largest bank. This came after the Chief Financial Officer Nadine Ahn was fired following an investigation into a personal relationship she allegedly had with another employee.

Ms. Ahn had joined Royal Bank in 1999 and had held various financial roles before being named CFO in September 2021. The investigation revealed that she violated the code of conduct by having an undisclosed personal relationship with another employee, leading to preferential treatment and breaches of ethical standards.

Although the probe cleared both employees of any misconduct concerning the bank’s financial statements, the bank still considered her actions as a breach of its code of conduct. As a result, both employees had their employment terminated.

The code of conduct emphasizes the importance of high ethical standards and holds people managers accountable for leading by example, being respectful, transparent, and fair in all relationships. The bank made it clear that despite the absence of financial impropriety, it considered the actions of the two employees to be a violation of its code of conduct.

The other employee involved in the situation was Ken Mason, a vice president and head of capital and term funding at RBC, with 23 years of experience at the bank. The bank’s decision to terminate the employment of both individuals was outlined in a statement.