By Nivedita Balu
TORONTO (Reuters) -Royal Bank of Canada filed a countersuit against ousted CFO Nadine Ahn on Friday, detailing the findings of its internal investigation into her alleged intimate relationship with a subordinate and accusing her of violating its code of conduct.
Ahn sued RBC last week for wrongful dismissal, claiming “gender-based stereotyping” was a factor in her firing. She has sued RBC for nearly C$50 million ($36.56 million).
In April, RBC, Canada’s largest bank, said it terminated Ahn after an investigation revealed she had a secret, close personal relationship with another executive, Ken Mason, that led to his preferential treatment, including promotions and pay increases.
Mason has also sued the bank for about C$20 million for wrongful termination and has denied any close personal relationship with Ahn.
In its defense and counterclaim filed in the Ontario Court of Justice, RBC said it had received an anonymous whistleblower complaint that Ahn and Mason were in an intimate relationship.
RBC said it has reviewed electronic communications on its systems and its investigation revealed that Ahn and Mason regularly use personal and work devices to communicate.
In court, Ahn and Mason’s relationship was detailed, beginning in 2013 or earlier, highlighting their dates, poems written by Mason, intimate email exchanges and what the bank said was the code they used to initiate a meeting for a drink to describe.
RBC said Ahn must reimburse RBC approximately C$3.3 million for payments related to the performance-based deferred share program, the short-term incentive program and gains from the exercise of RBC stock options.
Ahn’s intervention led to Mason receiving a total compensation increase of 58% over two fiscal years beginning in 2021, and she made the decision to promote Mason to vice president and head of capital and term financing in 2023, the bank said.
Attorneys for Ahn, 53, and Mason, 57, did not immediately respond to requests for comment on the countersuit.
In her wrongful termination lawsuit, Ahn said the bank’s allegations were “patently false” and that her successes, career and reputation were destroyed by the bank in an instant.
A spokesperson for RBC said Friday it was disappointed to learn the allegations were true. Ahn was a “highly respected member” of the executive team with fiduciary responsibilities and the bank had “great confidence in her abilities,” the spokesperson said.
“Contrary to Ahn and Mason’s claims, the investigation revealed that there was an undisclosed, close personal relationship, and that Ahn abused her authority as CFO to directly benefit Mason,” the spokesperson said in a statement statement, adding that all senior executives have done so. the obligation to follow the code of conduct.
($1 = 1.3676 Canadian dollars)
