Royal Bank of Canada’s former chief financial officer, Nadine Ang, has filed a $36 million lawsuit against the bank after she was fired over allegations that she had an affair with and given preferential treatment to another employee, charges she denies.
The lawsuit, filed in Ontario Superior Court, alleges that Ang suffered “public humiliation” and “manifest damage to his reputation.”
Canada’s largest bank said it fired Ang on April 5 after an investigation found “irrefutable evidence” that he had violated the bank’s code of conduct.
The bank accused Ang of having an undisclosed personal relationship with Ken Mason, the bank’s head of capital and long-term funding, who was also fired in April.
An RBC spokesman told The Washington Post that an investigation found that the relationship led to “preferential treatment” for Mason, including “promotions and increased compensation.”
Ahn claims that the night before he was fired, he received a text message from RBC CEO David MacKay asking to meet the next morning.
When Ang showed up the next day, MacKay was not there. Instead, the lawyer peppered her with questions about Mason, the lawsuit said.
Her laptop and cell phone were seized the same day, according to the complaint.
Ang said the bank’s claims that it had ties to Mason and received preferential treatment as a result were “demonstrably false.”
Instead, Ahn claimed he had been close friends with Mason since 2013, long before he became CFO, the lawsuit said.
Their friendship was never a secret, the lawsuit states.
Mason has also filed a lawsuit against the bank, seeking about $14.5 million in fees and damages.
He claimed the bank “ambushed” him with a “discriminatory” and “inappropriate” meeting.
The lawsuit alleges that if he and Ang were of the same sex, the bank would not have gone ahead with the investigation.
“By unfairly and publicly shaming Ken and Ann, RBC chose to create the illusion of moral righteousness and to swiftly investigate and punish alleged corruption,” the lawsuit said.
An RBC spokesman said in a statement that the claims were “without merit” and that the bank would “vigorously defend against them in court.”
The Toronto-based bank previously said it had launched an investigation into Ang’s ties to Mason after learning of the allegations against its former CFO in March.
An RBC spokesman said the bank would “immediately” hire outside legal counsel to investigate the allegations.
Ahn’s Facebook profile states she is married, a status that was also listed on her social media profiles in April.
In April, Ang’s LinkedIn profile showed he began a 12-year stint at RBC as a senior manager, later rising to managing director, vice president and senior vice president.
She was promoted to the bank’s chief executive officer in 2021.
The 52-year-old was taking home a big paycheck before she was made redundant.
By 2023, she was making about $3 million a year, comprised of a salary of about $475,000 and more than $2.5 million in bonuses and stock awards. According to Bloomberg.
Her annual earnings for 2023 are up 25% from last year.
RBC executives who are fired for cause will not receive severance pay and may be asked to forgo bonuses. According to the bank’s annual proxy statement.
The bank declined to comment on whether Ang would have had to give back some of his 2023 income.
In April, RBC named longtime employee Katherine Gibson as interim CFO.
Gibson has held several senior roles during his more than 20 years with the company, most recently as senior vice president of finance and accounting.
