Nadine Ahn alleges wrongful termination due to a personal relationship, challenging RBC's conduct code
Nadine Ahn, a former chief financial officer at Royal Bank of Canada (RBC), has filed a lawsuit against the bank, alleging wrongful dismissal after being fired over a personal relationship with a colleague.
Ahn claims she was a potential candidate to become RBC’s first female CEO before her termination, according to BNN Bloomberg.
Ahn, who was promoted to CFO in 2021, had a spotless 25-year employment record at RBC. The lawsuit she filed states that she was recognized as a “loyal, trustworthy, and extraordinarily talented leader” who overcame numerous gender-based challenges during her career.
However, on April 5, 2023, RBC dismissed Ahn, citing a violation of its code of conduct due to an “undisclosed close personal relationship with another employee,” which the bank claimed led to preferential treatment for the colleague in question.
The colleague, Ken Mason, vice president of capital and term funding, was also terminated on the same day. Both Ahn and Mason have filed separate legal actions against RBC, each seeking tens of millions of dollars in pay and damages.
They allege that RBC’s press release falsely implied they were having an affair, and that Ahn had advanced Mason’s career as a result.
Mason’s lawsuit further claims that RBC’s actions were discriminatory and caused significant professional and personal harm. He asserts that the situation was “mischaracterized” by an anonymous accuser and RBC, turning a longstanding friendship into grounds for dismissal.
RBC has denied the allegations, with spokesperson Gillian McArdle stating, “These claims are without merit, and we will vigorously defend against them in court.”
She emphasized that RBC conducted a thorough investigation, including an external legal review, and found a significant breach of the bank’s Code of Conduct based on “irrefutable evidence.”
The legal documents filed by Ahn and Mason offer a rare glimpse into the internal processes of Canada’s largest bank. According to Ahn’s court filing, she was summoned to a meeting on April 5 by CEO Dave McKay.
However, upon arrival, she was instead met by an external lawyer and an RBC employee relations representative, who seized her laptop and mobile phones before interrogating her for about two hours.
Mason’s account describes a similar experience. He was called to a meeting with Chief Risk Officer Graeme Hepworth but was instead questioned by external lawyers and an RBC employee relations representative for approximately two hours.
Mason’s lawsuit alleges that the interrogation was based on an anonymous complaint that falsely accused him of having an inappropriate relationship with Ahn.
Both Ahn and Mason maintain that their friendship did not violate RBC’s code of conduct. Ahn is seeking nearly $50m in damages, including $20m for “devastating, worldwide reputational harm.” Mason is suing for more than $20m.
This case highlights ongoing gender equity issues within Canada’s banking sector. To date, no woman has served as CEO of one of Canada’s six largest banks.
At RBC, three of the nine most senior executives are women, but all heads of the bank’s major business lines are men—a situation set to change on September 1 when Erica Neilsen takes over as head of personal banking.
