Nadine Ahn, RBC CFO, fired for undisclosed relationship that violated conduct code; bank names interim CFO
Royal Bank of Canada (RBC) has dismissed its chief financial officer, Nadine Ahn, following an internal investigation that found she had engaged in an undisclosed close personal relationship with another employee, as reported by BNN Bloomberg.
This relationship, according to the bank, breached RBC's code of conduct by leading to preferential treatment in terms of promotion and compensation increases for the involved employee.
In the wake of these findings, Katherine Gibson, a veteran employee at Royal Bank, has been appointed as the interim CFO.
RBC has also initiated a search for Ahn's permanent successor. The bank disclosed that upon learning about the allegations against Ahn, it immediately commenced an internal review and sought the expertise of external legal counsel to conduct a thorough investigation.
The investigation revealed that Ahn's actions contravened the RBC Code of Conduct due to the nature and concealment of her relationship, resulting in her termination along with the unnamed involved employee.
RBC clarified that the inquiry unearthed no evidence suggesting that the former CFO or the other employee compromised the bank's financial statements, strategy, or overall financial and business performance.
Ahn, who had been with RBC since 1999 and ascended to the CFO position in September 2021, had a distinguished tenure in various key departments including treasury, risk, and investor relations.
Her appointment as CFO marked a significant milestone as she was the only female to hold this position among Canada's Big Six banks until Marie Chantal Gingras later joined her ranks at the National Bank of Canada.
At the time of her dismissal, Ahn, in her early 50s, was a Chartered Professional Accountant and a University of Toronto business graduate (class of 1994).
Her compensation for fiscal 2023 was reported at $4.1m, encompassing salary, bonuses, and stock awards, reflecting a 25 percent increase from the previous year.
RBC's policy, as stated in its annual proxy circular, stipulates that top executives terminated for cause will not receive severance and may also lose entitlement to various bonus awards.
Gillian McArdle, a spokesperson for Royal Bank, declined to provide further comments on the matter. Attempts to reach Ahn for a statement were unsuccessful.
