Royal Bank of Canada CFO Fired After Relationship Scandal With Another Employee

By Thea Felicity

Apr 08, 2024 10:37 AM EDT

Jersey Seen As One Of The UK's Island Tax Havens — ST HELIER, JERSEY - APRIL 11: Buildings in the financial area of St Helier including the offices of The Royal Bank of Canada (RBC) are seen on April 11, 2017 in St Helier, Jersey. Jersey, which is not a member of the European Union, is one of the top worldwide offshore financial centres, described by some as a tax haven, as it attracts deposits from customers outside of the island who seek the advantages of reduced tax burdens. In 2008 Jersey's gross national income per capita was among the highest in the world. However, its taxation laws have been widely criticised by various people and groups including the EU. As the UK negotiates its exit from the EU having triggered Article 50, concerns have been raised as to how this will affect the future of the financial industry on the island especially as The chancellor, Philip Hammond has claimed Britain could also become a corporate tax haven if the EU fails to provide it with an agreement on financial market access after Brexit.
(Photo : Photo by Matt Cardy/Getty Images)

The Royal Bank of Canada dismissed its Chief Financial Officer, Nadine Ahn, following an internal investigation revealing an undisclosed personal relationship with a fellow employee. According to NYPost, the revealed personal relationship breached the bank's code of conduct.

The internal investigation was initiated after the Royal Bank of Canada received allegations against Ahn in March, prompting immediate action, including engaging external legal counsel.

The inquiry concluded that Ahn's relationship with the undisclosed staffer led to preferential treatment, including promotions and increased compensation. Although there was no evidence of misconduct related to financial statements, the bank terminated the employment of both individuals on April 5.

Who Is Royal Bank of Canada's Chief Financial Officer?

Nadine Ahn, who had a 12-year tenure at RBC, had climbed the ranks to the C-suite, earning an annual compensation exceeding $3 million by 2023. However, her termination raises questions about potential forfeitures of bonuses and stock awards.

Meanwhile, Katherine Gibson, a veteran of more than two decades at RBC, steps in as interim CFO while the search for a permanent replacement ensues. Gibson brings a wealth of experience, having served in various senior positions, including senior vice president of finance and controller.

Ahn has yet to comment on regarding her dismissal from Royal Bank of Canada.

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