Royal Bank of Canada fires CFO due to undisclosed close relationship with another employee.

The bank named Katherine Gibson as its interim CFO, following the firing of the Chief Financial Officer Nadine Ahn. She was reportedly dismissed due to an alleged personal relationship with another employee, violating the code of conduct. Nadine Ahn had joined the bank in 1999, working in various financial roles before being named CFO in September 2021.

The investigation found that she had an undisclosed personal relationship with another employee, leading to preferential treatment including promotion and compensation increases. Although the probe cleared both employees of any misconduct regarding the bank’s financial statements, the bank considered their actions a breach of its code of conduct. As a result, both employees were terminated.

The bank’s code of conduct emphasizes high ethical standards and holds people managers accountable for leading by example, being respectful, transparent, and fair in all relationships. The other employee involved was identified as Ken Mason, a 23-year veteran at RBC and the head of capital and term funding. It was reported that the bank’s decision to terminate the employment of both individuals was based on these breaches of conduct, despite the absence of financial impropriety.