RBC fires CFO Nadine Ahn after probe into personal relationship

(Bloomberg) — Royal Financial institution of Canada fired its Chief Monetary Officer Nadine Ahn after an inside overview concluded that she was in an undisclosed shut private relationship with one other worker that violated the financial institution’s code of conduct. 

Katherine Gibson, a long-time Royal Financial institution worker, was named interim CFO and a search shall be held for a everlasting alternative, the financial institution stated in an announcement Friday night.

The financial institution stated it was “just lately made conscious of allegations involving Ms. Ahn and instantly launched an inside overview and engaged outdoors authorized counsel to analyze.”

“The investigation discovered proof that, in contravention of the RBC Code of Conduct, Ms. Ahn was in an undisclosed shut private relationship with one other worker which led to preferential therapy of the worker together with promotion and compensation will increase.”

Each Ahn and the opposite worker, who wasn’t recognized, had been terminated, the financial institution stated within the assertion, which famous that the CFO was fired earlier Friday. Royal Financial institution spokesperson Gillian McArdle declined additional remark. Ahn couldn’t be instantly reached for remark.   

“The investigation discovered no proof of conduct by the previous CFO or the opposite worker with respect to the financial institution’s beforehand issued monetary statements, RBC’s technique or its monetary or enterprise efficiency,” based on the assertion. 

Learn Extra: RBC Promotes Nadine Ahn to CFO, Expands McLaughlin’s Function

Ahn joined Royal Financial institution in 1999 and labored in a sequence of treasury, danger, investor relations and different monetary roles earlier than being named CFO in September 2021. On the time, she was the one feminine CFO at any of the Huge Six Canadian banks, although Marie Chantal Gingras was since named CFO at Nationwide Financial institution of Canada.

Ahn, who’s in her early 50s, is a chartered skilled accountant and graduated with a enterprise diploma from the College of Toronto in 1994, based on her LinkedIn profile. 

She earned C$4.1 million ($3 million) in direct compensation in fiscal 2023, together with C$650,000 in wage and greater than C$3.4 million in bonuses and inventory awards. That was up about 25% from the prior 12 months. 

Royal Financial institution’s annual proxy round states that if one among its high executives is terminated for trigger, the financial institution gained’t pay severance and the worker may additionally forfeit varied different bonus awards. 

(Updates with additional particulars starting in fifth paragraph)

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