Royal Bank Of Canada CFO Nadine Ahn Sacked For Violating Company’s Policy: Report

The Royal Bank of Canada (RBC) removed Chief Financial Officer (CFO) Nadine Ahn, on April 5, after an internal investigation revealed that she had an “undisclosed relationship” with another employee, which was against the bank’s policy. The bank was informed in March about the “allegations” against Ahn, which prompted the inquiry. As per the New York Post, an RBC representative said that the bank “immediately” hired external legal counsel to look into the matter.

The report added that the relationship she had with the unidentified staff member “led to preferential treatment of the employee including promotion and compensation increases.” None of the former CFO’s or the other employee’s actions were deemed to have violated RBC’s code of conduct, the bank’s previously released financial statements, or its financial or business practices.

As a consequence, RBC stated in a statement it released on Friday night, that the employment of both individuals was terminated. Ahn, who was associated with the bank for 12-year career, had joined as senior manager. She was then promoted to managing director, vice president, and finally senior vice president, according to her LinkedIn page.

She was promoted to the C-suite of the Toronto-based bank in 2021. According to Bloomberg, she was earning around $3 million a year by 2023, which included a salary of over $475,000 as well as incentives and stock awards of up to $2.5 million.

The New York Post also stated that Ahn’s yearly profits for the previous year had increased by 25 per cent. Top executives who are sacked for cause are not entitled to severance pay, according to the Royal Bank’s annual proxy circular, which was published earlier this month.

“As a matter of policy, we do not comment on specific matters relating to individual employees, past or present,” an RBC spokesperson stated in a statement to The New York Post.

As the bank looks for a permanent substitute, longtime RBC employee Katherine Gibson was designated interim CFO, the report added. Throughout her more than 20 years with RBC, Gibson has had a number of high-level roles, the most recent of which was senior vice president and controller of finance.