Allegations of Personal Relationship Lead to Dismissal of Former RBC CFO
An alleged intimate relationship has reportedly hindered Nadine Ann, the former Chief Financial Officer of the Royal Bank of Canada (RBC), from becoming the first woman to lead the Canadian bank before her termination. In a lawsuit filed against the lender, she claims she was “tipped as a likely successor for the CEO position” but was removed due to a personal connection with a colleague.
Appointed as CFO of RBC in 2021, Ann has “an impeccable work record,” according to court documents. “Throughout her 25-year career at the bank, she has proven to be a loyal, reliable, and exceptionally talented leader, overcoming numerous gender-related obstacles.”
The 53-year-old Ann was dismissed from Canada’s largest lender based on allegations that she violated the institution’s code of conduct through an “undisclosed intimate relationship with another employee, which led to preferential treatment for him, including promotions and bonus increases.” The other individual involved is Ken Mason, the Vice President of Capital and Credit Financing, who was also terminated on the same day.
Both have filed separate wrongful dismissal lawsuits, each seeking tens of millions of dollars in damages. They assert that RBC’s press release regarding Ann’s removal implies a romantic affair that aided Mason’s career advancement due to his association with her.
Both Ann and Mason are married with children, as revealed in the court filings.
In an official statement, RBC spokesperson Gillian McArdle stated that “the plaintiffs’ allegations are unfounded” and that “the lender will actively defend against them in court.” She added that a “thorough investigation by an external legal consultant was conducted, and the facts are clear that there was a breach of the bank’s ethical code based on the gathered evidence.”
The documents provide a rare glimpse into the internal affairs of Canada’s largest lender. Both former employees describe being summoned separately for meetings on the morning of April 5, where they were confronted with questions about their relationship.
In her lawsuit, Ann claims that CEO Dave McKay sent her a message on the evening of April 4, requesting her presence at a meeting the following morning. She reportedly tried unsuccessfully to learn the purpose of the gathering, and upon arrival, she found McKay absent. Instead of him, she was met by an external lawyer and a member of the bank’s employee relations team. Her laptop and mobile phones were confiscated, and the meeting lasted nearly two hours “in the form of an investigation.”
Mason was called into a meeting with Chief Risk Officer Graham Hepworth, and when he arrived at 11 a.m. Canadian time on April 5, Hepworth was not present. Similar to Ann, Mason was interrogated for about two hours by external lawyers and a member of the employee relations team, who entered and exited the room during the meeting. The lawyers “attempted to trap Ken with scandalous, damaging, hurtful, and false accusations based on anonymous complaints, alleging that he had an inappropriate personal relationship” with Ann. He was informed of his impending dismissal, and hours later, he was indeed terminated.
Ahn and Mason File Lawsuits Against RBC
Ahn and Mason assert that they have been friends for years, and their relationship does not violate any banking codes. They claim that their friendship and professional connections have been misinterpreted by an anonymous accuser and by RBC, as mentioned in Mason’s lawsuit.
Gender Representation in Canadian Banking
Notably, no woman has ever held a leadership position at any of Canada’s six largest financial institutions. At RBC, only three of the nine top executive roles are occupied by women. Currently, all heads of the main banking business lines are men, a situation set to change on September 1st, when Erika Nielsen takes over the leadership of the personal banking division.
Financial Claims Against RBC
Ahn is suing RBC for nearly CAD 50 million (USD 36.4 million), with CAD 20 million sought for special and general damages due to “devastating, worldwide reputational harm.” Mason is also pursuing compensation, requesting over CAD 20 million.
