Royal Bank of Canada Denies Claims of ‘Boys Club’ Culture, Bias Against Women

Royal Bank of Canada denies claims that it fostered a “boys’ club” environment at its US capital-markets business, disputing allegations that the firm engaged in sex-based discrimination against female bankers and offered unequal pay and promotions to women.

In a federal lawsuit filed in Manhattan court earlier this month, Jennifer Caruso-Jones, 54, alleged that over more than 13 years with the bank, she earned hundreds of thousands of dollars less than male peers and saw her bonus cut by 30% after taking maternity leave. The plaintiff was formerly a managing director in the equity capital markets group of RBC Capital Markets LLC, Royal Bank’s US investment-bank subsidiary.

Her treatment was “part of a pattern or practice of discrimination against women at the managing-director level,” Caruso-Jones said in the filing, in which she alleged that RBC imposed a so-called “pregnancy tax” on women returning from leave by prorating their bonus payment to account for time off work. The complaint notes that RBC has since revised its parental-leave policy to provide “non-discriminatory benefits.”

RBC denies virtually all of the plaintiff’s allegations about her time at the firm and how she and other women were treated. In an answer filed with the court Friday, the bank also outlines numerous defenses, including that the alleged conduct, which it denies, was “nothing more than what a reasonable person would consider ‘petty slights and trivial inconveniences.'”

“We believe these claims are entirely without merit,” a spokesperson for the bank said, adding that RBC is committed to a fair and respectful workplace and doesn’t tolerate discrimination, harassment or retaliation. “As a matter of company policy, we do not comment on the specifics of employee matters.”

The suit depicts a male-dominated workplace that offered little flexibility for caregiving or medical needs. Other banks have faced similar accusations and RBC itself was ordered to pay nearly $9.7 million to a former wealth adviser in Minnesota last year after arbitrators at the Financial Industry Regulatory Authority found she was discriminated against based on age and gender. (That case related to a different RBC division than the current claim.)

Caruso-Jones’ suit said at least five other female managing directors left the firm in 2023, two of whom had complained about the “boys’ club” environment. RBC denied all of the allegations related to those departures.

Golf, Drinks

Caruso-Jones, who was promoted to managing director in 2015, said it took her years to reach $1 million in total annual compensation — a level male peers hit sooner. She claims she was overlooked for a promotion in favor of an external candidate, a man who was paid about 55% more despite similar qualifications.

After returning from a stress-related disability leave in 2023, she said her new managers fostered an exclusionary culture — holding golf outings, going for drinks and attending sporting events without inviting her. One boss allegedly said he wanted to hire “a young guy, who has no family ties, that is fine with going out every night for drinks or dinner and is eager to do so.”

Caruso-Jones alleges she felt pressure to accept a separation package months later — which she ultimately did not take — and that RBC falsely labeled her exit as a “retirement,” damaging her job prospects. She said the bank also gave potential employers false information, leaving her unable to find new work.

While RBC denies most of Caruso-Jones’ claims, it stated in its filing that she was a strong performer and was promoted up to managing director during her time with the firm. The bank claims that when it was planning a workforce reduction in 2023, Caruso-Jones asked to be included. RBC said it offered her a severance package worth more than $1.1 million and that her employment was later terminated.

Photograph: The Royal Bank of Canada (RBC) headquarters in Toronto, Ontario, Canada, on Wednesday, March 8, 2023; photo credit: Della Rollins/Bloomberg

Topics Claims Leadership Canada