Royal Bank of Canada (RBC) has accused a former employee of using a personal relationship with the bank’s former chief financial officer (CFO) to advance his career and boost his compensation. The allegations were made public in a statement of defence and countersuit filed by the bank on Friday.
Ken Mason, who previously worked in RBC’s treasury department, was dismissed in April 2024, coinciding with the departure of then-CFO Nadine Ahn. A Bloomberg report noted the bank alleged that Mason engaged in a decade-long intimate relationship with Ahn, which led to significant financial benefits and career advancements for Mason. According to RBC, this relationship crossed professional boundaries, influencing Ahn to secure large raises and a promotion for Mason, raising his pay to nearly CA$1.2 million ($888,000) in 2023.
Mason and Ahn, both of whom are suing RBC for wrongful dismissal, denied the romantic relationship, claiming they were just friends. In their lawsuits, Ahn contended that the bank subjected her to public humiliation and significant reputational damage, while Mason alleged that RBC’s handling of the situation would have been different if both individuals involved were men.
In its recent court filing, RBC detailed that Mason’s compensation increased by 70% during Ahn’s tenure as CFO, a rise attributed to Ahn’s influence. The bank described this as part of a coordinated effort between Ahn and Mason, dubbed “Project Ken,” to secure his promotion to an executive-level position.
The bank’s filing also repeated earlier allegations against Ahn, including claims that the two regularly met outside of work, exchanged romantic messages, and referred to each other with pet names. When confronted by RBC in April, Mason denied having an intimate relationship with Ahn, insisting they were merely “work friends.”
Despite Mason’s denial, RBC maintained that his promotion to vice-president was orchestrated by Ahn as a key element of “Project Ken.” RBC is now seeking to recover what it terms “excess compensation” paid to Mason due to Ahn’s actions, in addition to other damages and costs. The bank is also pursuing the return of certain bonus payments made to both Mason and Ahn, claiming it may be entitled to compensation for damages related to the dismissal of another employee allegedly fired by Ahn after raising concerns about Mason’s compensation.
The legal battle is ongoing, with both Ahn and Mason seeking substantial damages. Ahn is demanding nearly CA$50 million in pay and damages, while Mason is pursuing over CA$20 million.
As the case develops, RBC has declined to comment further. The bank previously disclosed that it initiated an investigation into the relationship after receiving an anonymous tip in March 2024.
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