High-flying executive Nadine Ahn appeared to be riding a wave of success earlier this year after a C$13.5bn ($16.12bn) mega-deal cemented her status as one of the most powerful women in banking.
By overseeing Royal Bank of Canada’s (RBC) acquisition of HSBC’s Canadian arm, themarried mother of three steered the country’s largest-ever banking takeover. The deal appeared to be the crowning glory of Ahn’s 25-year career at RBC, having risen through the ranks to become the bank’s chief financial officer.
But today it looks increasingly likely to be her epitaph.
Just weeks after the deal was completed, Ahn was sacked by RBC for allegedly having an illicit 11-year relationship with a colleague, Ken Mason. In court documents seen by the Telegraph, RBC implied that the pair’s relationship went beyond just professional matters, alleging that she helped him secure large pay rises and promotions.
Ahn has denied the claims, sparking a bitter legal battle in Canada over whether RBC acted improperly by sacking both her and Mason. She is seeking $59m in damages from RBC, claiming that her unfair dismissal led to her suffering “devastating, worldwide reputational harm”.
The dispute throws an unwelcome spotlight on RBC, a lender worth $258b, with 17 million customers and 94,000 employees. The 160-year-old bank, which took inspiration from the Royal Bank of Scotland, has largely secured a staid reputation by flying under the radar of corporate scandals.
Having dodged the worst of the financial crisis, it is generally known in the UK as a mid-market lender providing broking and advisory business for takeover deals.
However, RBC published startling documents unveiling a string of text messages and emails between Ahn and Mason spanning more than a decade. This correspondence, RBC alleged, demonstrated the depths of their relationship.
The allegations made by RBC include details about the pair’s pet names for one another, including “Prickly Pear” for Ahn and “KD” for Mason. Evidence also referenced text messages including phrases such as “I love you”.
The Royal Bank of Canada published text messages between the pair.
‘Project Ken’
According to RBC, Mason – an executive in RBC’s corporate treasury business – and Ahn had developed a “close personal relationship” between 2013 and 2024.
The bank alleged that Ahn used her powers as chief financial officer to strengthen Mason’s position at the bank. It claimed that after she was promoted to the role in 2021, Mason’s pay increased from $830,000 to $1.13m. A year later, she allegedly intervened again by boosting his pay to $1.3m. In 2023, he was promoted to vice-president.
In total, RBC alleged Mason’s pay rose 70% after Ahn assumed her role as finance chief. This helped him fulfil a plan concocted in 2017 – codenamed “Project Ken” – which revolved around boosting his pay and him becoming a vice-president.
Ahn has hit back at RBC’s claims, which she says are “categorically false”. She has also denied that her friendship with Mason led to him receiving any unfair advantages.
The legal battle arose in Ontario after an internal investigation was launched by RBC in March 2024.
Nadine Ahn is seeking $59m in damages from RBC on the grounds of unfair dismissal.
‘The story of Prickly Pear and KD’
This came after a whistleblower alleged that the couple had been seen “hugging and kissing” leaving an elevator at the exclusive Fairmont Royal York hotel in Toronto.
Relying on text messages and emails obtained from RBC’s systems, the bank alleged that the pair would arrange secret drinks, which were labelled in their calendars under code names, such as “liquidity updates” or “liquidity meetings”.
RBC also alleged that the pair fantasised about a life together, enjoying activities such as reading in bed.
Mason allegedly wrote a poem called Ode to Cocktails, in which he described Ahn as a “beautiful cocktail girl”. His alleged passion for Ahn led to him creating a 43-page “love book” that detailed “the story of Prickly Pear and KD”, which concluded that the pair “lived happily ever after”.
RBC said its policy meant Ahn should have disclosed the relationship if it “could be perceived to have the ability to impact compensation, work or promotion prospects”.
In response, Ahn has denied she was in an undisclosed personal relationship that led to Mason’s promotion and pay rises. According to her unfair dismissal claim, filed at the Ontario Superior Court of Justice on August 6, Ahn said she became friends with many of her co-workers and did not conceal her relationship with Mason.
She said RBC’s investigation was “tainted by underlying gender-based, stereotypical assumptions about friendships between women and men”. As part of her claim, Ahn is seeking $14m in lost pay and bonuses, $6m for lost share awards and $23.8m for defamation damages.
