Bank alleges intimate email exchanges, including poems, coded messages, sent between two executives
Royal Bank of Canada (RBC) has escalated a legal battle with its former CFO Nadine Ahn by filing a countersuit after dismissing her for alleged code of conduct violations.
The case revolves around accusations of an undisclosed personal relationship between Ahn and a subordinate, Ken Mason, another executive at the bank who was terminated along with Ahn.
The countersuit, filed on Augus 16, comes in response to Ahn's wrongful termination lawsuit filed against RBC earlier this month. Ahn, who is seeking nearly $50 million in damages, claimed that her dismissal was influenced by "gender-based stereotyping," reported Reuters.
Ahn was a candidate to be the first female CEO of the bank, Canada’s largest. Her lawsuit contended that the allegations made by the bank are false, stating her career and reputation were "destroyed in an instant" by RBC’s actions.
In a statement issued to the media, a spokesperson for RBC expressed disappointment in the findings of their investigation, despite initially holding Ahn in high regard.
"Ahn was a highly respected member of our executive team with fiduciary responsibilities, and we had great confidence in her abilities," the spokesperson said.
However, the bank maintained her actions violated its code of conduct, leading to her dismissal.
RBC countersues former CFO Ahn, claims breach of code of conduct https://t.co/mmvW6WTIAN pic.twitter.com/vFvZEDa4Tr
— Reuters Business (@ReutersBiz) August 17, 2024
The countersuit details findings from RBC’s internal investigation, which began after an anonymous whistle-blower lodged a complaint against Ahn and Mason, Reuters reports.
RBC’s investigation allegedly uncovered an intimate relationship between Ahn and Mason, a violation of the bank’s code of conduct. According to the court filings, RBC alleged the relationship gave Mason preferential treatment, including a 58% increase in his total compensation over a span of two fiscal years, beginning in 2021. Ahn also reportedly promoted Mason to the position of Vice President and Head of Capital and Term Funding in 2023.
Mason has also filed a lawsuit against RBC, seeking about $20 million for wrongful termination. Both claims deny the existence of any close personal relationship between the two, claiming their relationship was purely friendly. In their filings, Mason's legal team maintains that the allegations are unfounded and that his professional advancements were based solely on merit.
RBC has demanded that Ahn repay roughly C$3.3 million in performance-related bonuses and other financial gains. These gains include payments from a short-term incentive program, performance-based deferred share unit program, and stock option gains.
RBC filed a statement of defense and counterclaim with the Ontario Court of Justice, alleging the relationship between Ahn and Mason began in 2013 or earlier. The bank’s internal investigation into the relationship included a review of electronic communications on both personal and work devices. RBC has submitted intimate email exchanges between the two as evidence, Reuters reports, including poems allegedly written by Mason to Ahn, as well as coded messages the pair reportedly used to arrange personal meetings.
Ahn has refuted the bank’s allegations, arguing that they are "patently false." According to her lawsuit, the accusations have severely damaged her personal and professional reputation, effectively ending her career in the banking industry.
