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Royal Bank of Canada ex-CFO sues for $36M after dismissal over ‘patently false' accusations of extramarital affair
RYRoyal Bank of Canada(RY) New York Post·2024-08-12 16:25

Core Viewpoint - The Royal Bank of Canada (RBC) is facing a lawsuit from its former CFO Nadine Ahn for 36million,followingherterminationoverallegedmisconductrelatedtoapersonalrelationshipwithanotheremployee,whichshedenies[1][2].Group1:AllegationsandLawsuit−NadineAhnclaimsshewaswrongfullyterminatedandsuffered"publichumiliation"and"palpablereputationalharm"duetotheallegationsagainsther[1][2].−RBCstatedthatAhnwasfiredafteraninvestigationfound"irrefutableevidence"ofherviolatingthebank′scodeofconduct,specificallyregardingherrelationshipwithKenMason,whowasalsoterminated[2][6].−AhnassertsthatherrelationshipwithMasonwasalong−standingfriendshipandnotromantic,counteringthebank′sclaimsofpreferentialtreatment[3][5].Group2:InvestigationandResponse−RBCinitiatedaninvestigationafterreceivingallegationsagainstAhninMarch,andtheyengagedoutsidelegalcounseltoconducttheinquiry[6][7].−Thebank′sspokespersonhasstatedthattheclaimsmadebyAhnare"withoutmerit"andthatRBCwilldefenditselfvigorouslyincourt[6][8].Group3:FinancialImplications−Ahn′scompensationin2023wasapproximately36 million, following her termination over alleged misconduct related to a personal relationship with another employee, which she denies [1][2]. Group 1: Allegations and Lawsuit - Nadine Ahn claims she was wrongfully terminated and suffered "public humiliation" and "palpable reputational harm" due to the allegations against her [1][2]. - RBC stated that Ahn was fired after an investigation found "irrefutable evidence" of her violating the bank's code of conduct, specifically regarding her relationship with Ken Mason, who was also terminated [2][6]. - Ahn asserts that her relationship with Mason was a long-standing friendship and not romantic, countering the bank's claims of preferential treatment [3][5]. Group 2: Investigation and Response - RBC initiated an investigation after receiving allegations against Ahn in March, and they engaged outside legal counsel to conduct the inquiry [6][7]. - The bank's spokesperson has stated that the claims made by Ahn are "without merit" and that RBC will defend itself vigorously in court [6][8]. Group 3: Financial Implications - Ahn's compensation in 2023 was approximately 3 million, which included a salary of about 475,000andover475,000 and over 2.5 million in bonuses and stock awards, reflecting a 25% increase from the previous year [9]. - RBC's policy indicates that executives terminated for cause are not entitled to severance and may have to forfeit bonuses, although it is unclear if Ahn will have to return any of her earnings [9]. Group 4: Interim Leadership - Following Ahn's termination, RBC appointed Katherine Gibson as the interim CFO, who has over two decades of experience with the bank [10].