Royal Bank of Canada Sacks CFO Over Company Romance

The Royal Bank of Canada, the country’s largest bank, has removed Chief Financial Officer Nadine Ahn following a probe into a personal relationship she allegedly had with another employee, according to the NDTV.

Ms Ahn joined Royal Bank in 1999 and worked in treasury, risk, investor relations, and other financial responsibilities before becoming CFO in September 2021.

In a press release on April 5, the bank stated that it became aware of ”allegations” against Ms Ahn and initiated an investigation. It discovered she breached its code of conduct by having a ”undisclosed close personal relationship with another employee, that led to preferential treatment of the employee, including promotion and remuneration increases.

The Royal Bank’s code of conduct states: “While we are all held to the high ethical standards set out in our Values and the Code, those of us who are people managers are accountable for leading by example,” which includes “being respectful, transparent, and fair in all relationships.”

Violation of Royal Bank’s code of conduct

Though the investigation absolved both workers of any malfeasance involving the bank’s financial statements, it stated that, despite the lack of financial impropriety, the bank saw her acts as a violation of its code of conduct.

As a result, both employees had their jobs terminated, according to the Royal Bank.

According to The Globe and Mail, the other employee is Ken Mason, a vice president and head of capital and term funding at RBC with 23 years of experience. Katherine Gibson, the bank’s senior vice president of finance and controller, has been designated temporary CFO while the hunt for a permanent successor continues.

An RBC spokesperson said “in her new role, Ms Gibson will bring a wide range of experience leading global teams and major strategic enterprise initiatives, including a deep understanding of business drivers and growth opportunities across several areas of the bank,” RBC stated.

Bank of Canada Ponders Rate Drop

Meanwhile, Governor Tiff Macklem of the Bank of Canada told Senators that it is coming closer to being able to begin reducing interest rates from their current 23-year highs.

Macklem told the Senate Banking Committee that inflation was falling and Canadians wanted to know when the central bank would begin decreasing interest rates.

“The short answer is we are getting closer,” he went on to say.

Canada’s annual inflation rate in March was 2.9%, slightly higher than the previous month. The Bank of Canada has set a 2% inflation objective.

Inflation has remained below 3% since January, in keeping with the central bank’s prediction for the first half of 2024, with carefully watched core consumer price indicators also falling steadily.

“We are seeing what we need to see, but we need to see it for longer to be confident that progress toward price stability will be sustained,” he said.