In a turn of events that has shaken the Canadian banking sector, Nadine Ahn, former Chief Financial Officer of the Royal Bank of Canada (RBC), finds herself at the center of a contentious legal battle. This dispute has cast a shadow over her role in orchestrating RBC's C$13.5 billion acquisition of HSBC's Canadian operations earlier this year.
Ahn, a married mother of three, had been with RBC for 25 years, climbing the corporate ladder to become one of the most influential women in banking. However, her career at Canada's largest bank came to an abrupt end when she was dismissed for allegedly maintaining an undisclosed 11-year relationship with a colleague, Ken Mason.
RBC, founded in 1864 and inspired by the Royal Bank of Scotland, has generally maintained a low profile in corporate scandals. The bank, which operates in 36 countries and employs approximately 89,000 people worldwide, is now facing unwanted scrutiny.
According to court documents, RBC claims that Ahn used her position to benefit Mason, securing him substantial pay increases and promotions. The bank alleges that after Ahn's promotion to CFO in 2021, Mason's compensation rose from C$695,000 to C$1.1 million by 2022, culminating in his promotion to vice president in 2023.
RBC's investigation, initiated in March 2024 following a whistleblower report, uncovered text messages and emails that allegedly demonstrate the depth of the relationship between Ahn and Mason. The bank claims the pair used code names and arranged secret meetings under the guise of "liquidity updates."
"The pair fantasised about a life together, enjoying activities such as reading in bed."
Ahn vehemently denies these allegations, labeling them "categorically false." She has filed a C$50 million lawsuit against RBC, claiming unfair dismissal and "devastating, worldwide reputational harm." Ahn argues that RBC's investigation was "tainted by underlying gender-based, stereotypical assumptions about friendships between women and men."
Mason has also taken legal action, seeking C$20 million in damages and alleging that the bank would have treated the situation differently if both parties were men.
This case raises important questions about workplace relationships, gender dynamics, and the boundaries between personal and professional life in the corporate world. As the legal proceedings unfold, the banking industry and beyond will be watching closely to see how these issues are addressed in the context of one of Canada's most prominent financial institutions.