While RBC has been focused on formalizing its new relationship with HSBC, a secret relationship among the bank’s highest ranks has shaken up the executive team.
What happened: Nadine Ahn, the now former CFO of Canada’s biggest bank, was fired after an investigation revealed that she had an undisclosed relationship with another high-ranking employee. The relationship reportedly led to special treatment, like raises and promotions.
- According to The Globe and Mail, the man in question is Ken Mason of the bank’s treasury department, which is responsible for the bank’s liquidity and financial risks. Mason was also fired.
- A complaint about the relationship was made on the bank’s internal confidential tip line called “Speak Up” nearly a month ago, which kicked off the investigation.
Why it matters: Ahn was reportedly seen as a contender to succeed RBC’s CEO Dave McKay, which would make her one of the relatively few women who have ever been considered to lead a major Canadian bank.
- McKay recently celebrated a decade in his role — his target compensation for 2024 is $17 million — while the average tenure for a financial services CEO is about 11 years, per Bloomberg.
Zoom out: Canada’s banking regulator recently identified character and culture as a non-financial risk, and said it would monitor the culture cultivated by senior leaders and the corporate governance structures that dictate how and when decisions are made.—MR