Nadine Ahn, the former Chief Financial Officer of the Royal Bank of Canada (RBC), has initiated legal proceedings against the bank, claiming she was wrongfully terminated due to a personal relationship with a colleague.
Ahn, who was considered a strong contender to become RBC’s first female CEO, contends that her dismissal was unjust. Ahn, who had an unblemished 25-year career at RBC and was promoted to CFO in 2021, argues in her lawsuit that she had been recognized as a “loyal, trustworthy, and extraordinarily talented leader” who overcame significant gender-based challenges throughout her tenure.
However, on April 5, 2023, RBC terminated Ahn’s employment, citing a breach of its code of conduct. The bank claimed that Ahn had failed to disclose a close personal relationship with a colleague, which it alleged had led to preferential treatment for that individual. The colleague in question, Ken Mason, who served as Vice President of Capital and Term Funding, was also dismissed on the same day. Both Ahn and Mason have since filed separate lawsuits against RBC, seeking tens of millions of dollars in compensation for lost pay and damages.
The lawsuits filed by Ahn and Mason assert that RBC’s public statements wrongly suggested they were involved in an affair and that Ahn had advanced Mason’s career as a result of their relationship. Mason’s lawsuit further alleges that RBC’s actions were discriminatory, leading to severe professional and personal harm. He contends that an anonymous accusation, which he claims misrepresented their longstanding friendship, was used by RBC to justify their dismissals.
RBC, however, has refuted these allegations. RBC spokesperson Gillian McArdle stated that the claims are baseless and that the bank plans to vigorously defend itself in court. She emphasized that RBC had conducted a comprehensive investigation, including an external legal review, which, according to her, revealed a significant breach of the bank’s Code of Conduct supported by “irrefutable evidence.”
The legal filings from both Ahn and Mason offer an unusual insight into the internal procedures at Canada’s largest bank. Ahn’s court documents reveal that she was called to a meeting on April 5, supposedly with CEO Dave McKay. Instead, she was confronted by an external lawyer and an RBC employee relations representative, who confiscated her laptop and mobile phones before subjecting her to a two-hour interrogation.
Mason’s account mirrors Ahn’s experience, as he was summoned to a meeting with Chief Risk Officer Graeme Hepworth but was similarly questioned by external lawyers and an RBC employee relations representative for around two hours. Mason’s lawsuit alleges that the interrogation was prompted by an anonymous complaint falsely accusing him of an inappropriate relationship with Ahn.
Both Ahn and Mason maintain that their friendship did not breach RBC’s code of conduct. Ahn is seeking nearly $50 million in damages, including $20 million for what she describes as “devastating, worldwide reputational harm,” while Mason is suing for more than $20 million.
This case underscores ongoing issues related to gender equity in Canada’s banking sector. Notably, none of the six largest banks in Canada have ever had a female CEO. At RBC, while three of the nine most senior executives are women, the heads of the bank’s major business lines have all been men—a situation that is set to change on September 1, when Erica Neilsen is slated to become the head of personal banking.
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