Royal Bank of Canada Terminates CFO Due to “Undisclosed Intimate Relationship” with Another Employee

The bank named Katherine Gibson, its senior vice president of finance and controller, as interim CFO. Royal Bank of Canada, the country’s largest bank, fired its Chief Financial Officer Nadine Ahn following an investigation into a personal relationship she allegedly had with another employee. Ms. Ahn joined Royal Bank in 1999 and worked in a series of treasury, risk, investor relations, and other financial roles before being named CFO in September 2021.

It was found that she violated the code of conduct by having an “undisclosed close personal relationship with another employee, that led to preferential treatment of the employee, including promotion and compensation increases.” The code of conduct specifies that all employees are held to high ethical standards set out in the bank’s values and code, and those in managerial positions are accountable for leading by example, including by being respectful, transparent, and fair in all relationships. The probe cleared both employees of any misconduct concerning the bank’s financial statements.

However, the bank considered Ms. Ahn’s actions as a breach of its code of conduct, leading to the termination of both employees’ employment, as stated in the bank’s official statement. Sources from the organization identified the other employee as Ken Mason, a vice president and head of capital and term funding, a 23-year veteran at RBC.