Former RBC CFO Sues for Wrongful Dismissal

The former chief financial officer of the Royal Bank of Canada is making headlines as she sues the bank for nearly $50 million, claiming she was wrongfully dismissed.

Nadine Ahn alleges that the bank had no valid reason to fire her and that their claims of her having a close, undisclosed relationship with a colleague, which supposedly led to unfair advantages, are unfounded. According to Ahn, she did not show favoritism towards her colleague, Ken Mason, and insists that the bank’s actions were influenced by gender stereotypes.

Ahn filed her lawsuit on August 8 with the Ontario Superior Court of Justice. She contends that the bank’s rush to terminate her employment on April 5 was based on a flawed investigation. The lawsuit is a response to RBC‘s assertion that she had a relationship that violated the bank’s code of conduct.

The claims made against Ahn caught her off guard, particularly as she was considered a strong candidate to eventually lead the bank. Ahn’s compensation had exceeded $4 million in the previous fiscal year, reflecting her importance in the organization.

RBC spokesperson Gillian McArdle stated that the bank had conducted a thorough investigation with the help of external legal counsel and found clear evidence supporting their allegations against Ahn. The bank believes it acted appropriately given the serious nature of the claims.

Interestingly, Ken Mason, who was also dismissed on the same day, has also filed a similar lawsuit amounting to around $22 million. He claims that his professional relationship with Ahn was mischaracterized and insists that the notion they had an improper affair is both false and damaging.

Both Ahn and Mason argue that their abrupt termination was poorly handled and lacked transparency. Besides being married with children, they argue that their friendship didn’t require disclosure under RBC’s policies.

This scenario has raised eyebrows in the financial community, particularly during a time when Ahn was one of the few high-ranking women in banking and even seen as a potential successor to the bank’s current CEO, Dave McKay.