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This week, the Globe and Mail reported that the Royal Bank of Canada terminated its chief financial officer.
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Nadine Ahn was let go after an employee complaint prompted an internal probe into an alleged undisclosed personal relationship between Ahn and a vice president in the bank’s treasury department. The investigation allegedly concluded that Ahn influenced the vice president’s promotions and pay raises.
In a statement late last week, RBC said Ahn was “in contravention of the RBC Code of Conduct” and that she and the vice president were both terminated last week.
RBC reported that it received the complaint on the bank’s employee tip hotline earlier this March.
The Globe and Mail also reported that Ahn stood to lose “millions in pay” but that the bank did not indicate if Ahn was terminated with cause. At the time of her termination, the publication reported Ahn’s total compensation was just under $4.2 million in 2023, including a salary of $641,644, a bonus of $963,625 and stock and option awards with a value of $2.46 million.
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Engaging in a relationship at work is something to be avoided. We all know that, don’t we? But such relationships happen anyway, everywhere, all the time. I have worked in several places where office romances were tolerated, and, at times, even celebrated.
We rarely accept a new role, expecting that a new relationship is in the offing. From clients I have worked with, they generally report that these kinds of relationships ‘just happened’ in organic and often innocent ways.
But like in the case of the RBC CFO, there can be a very dark side attributed to office relationships. It is the general assumption that these connections lead to deep-seeded conflicts of interest and intrapersonal chaos. This is particularly so when the relationship is hidden.
In the case of Ahn, we know little about what happened, whether the relationship was hidden, what RBC actually knew or didn’t know when it received the hotline tip, and whether or not the investigation was indeed conducted fairly. What we do know is that the bank moved immediately to dictate the narrative around Ahn’s departure, likely given her executive status and high public visibility.
It’s undoubtedly reasonable that Ahn was expected to walk the walk and abide by the bank’s code of conduct. That should, after all, be how executives operate.
But, it is commonplace that sometimes those in positions of authority are the chief rule breakers in their organizations; openly flouting company codes of conduct. How do many organizations respond? By looking the other way.
It is difficult to confront any employee about misconduct. Confronting a rainmaker or marquee employee that impacts your bottom line is even less palatable.
While many might agree that RBC made the right move to remove the two individuals at issue here, one must also ask if the bank applies its code of conduct as rigorously across the balance of its C-suite and executive teams. If it took a heavy-handed approach this time versus employing lighter disciplinary measures on other occasions, the application of its code of conduct was arbitrary, not principled.
While one should steer clear of office romances for many reasons, if they are condoned by an employer for some, they must be condoned for all.
Have a workplace question? Maybe I can help! Email me at sunira@worklylaw.com and your question may be featured in a future column.
The content of this article is general information only and is not legal advice.
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CHAUDHRI: Termination of RBC CFO raises questions
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13.04.2024
You can save this article by registering for free here. Or sign-in if you have an account.
This week, the Globe and Mail reported that the Royal Bank of Canada terminated its chief financial officer.
Subscribe now to read the latest news in your city and across Canada.
Subscribe now to read the latest news in your city and across Canada.
Create an account or sign in to continue with your reading experience.
Nadine Ahn was let go after an employee complaint prompted an internal probe into an alleged undisclosed personal relationship between Ahn and a vice president in the bank’s treasury department. The investigation allegedly concluded that Ahn influenced the vice president’s promotions and pay raises.
In a statement late last week, RBC said Ahn was “in contravention of the RBC Code of Conduct” and that she and the vice president were both terminated last week.
RBC reported that it received the complaint on the bank’s employee tip hotline earlier this March.
The Globe and Mail also reported that Ahn stood to lose “millions in pay” but that the bank did not indicate if........
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