Royal Bank of Canada’s CFO dismissed due to “Undisclosed Close 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, reported.

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 found she violated its 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 notes: “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”. Though the probe cleared both employees of any misconduct concerning the bank’s financial statements, it said that even though there was an absence of financial impropriety, the bank considered her actions as a breach of its code of conduct.

Both employees had their employment terminated as a result, the bank said in a statement. Sources from identified the other employee as Ken Mason, a vice president and head of capital and term funding, a 23-year veteran at RBC.