RBC claims former CFO and treasury employee used secret relationship for raises and promotions, sparking legal battle
Royal Bank of Canada (RBC) has accused a former employee, Ken Mason, of exploiting an intimate relationship with the bank’s former Chief Financial Officer (CFO), Nadine Ahn, as reported by BNN Bloomberg.
The bank claims Mason leveraged this relationship for personal gain, according to a statement filed by RBC.
The bank alleges that Mason leveraged this alleged relationship to advance within the firm, resulting in significant pay increases and an executive-level promotion.
RBC's statement of defence and countersuit, filed on Friday, claims that Mason and Ahn maintained a close personal relationship for over a decade, during which Ahn allegedly helped Mason secure large raises. These increases brought his total compensation to nearly $1.2m in 2023.
RBC contends that Ahn misused her power as CFO to favour Mason, as part of a collaboration they called ‘Project Ken,’ while concealing their relationship.
Both Mason and Ahn have filed lawsuits against RBC for wrongful dismissal. They deny having a romantic relationship, stating they were just friends. Ahn argues that the bank’s actions caused her “palpable reputational harm” and “public humiliation.”
Mason claims that the bank would have handled the situation differently if both parties had been men.
The bank’s counterclaims against Ahn and Mason seek to recover what RBC describes as “excess compensation” awarded to Mason due to Ahn’s influence, as well as bonus payments and other damages.
RBC also intends to recover compensation allegedly owed to another employee, who was reportedly terminated by Ahn after raising concerns about Mason's pay.
RBC has declined to comment further, referring back to its previous statements. The bank has previously disclosed that it initiated an investigation after receiving an anonymous complaint in March, alleging that Ahn and Mason were involved in a relationship.
The investigation, conducted by external legal counsel, led to the dismissal of both Mason and Ahn in April. Mason is seeking more than $20m in pay and damages, while Ahn is seeking nearly $50m.
