Lloyd's of London has launched an investigation into former CEO John Neal due to an alleged undisclosed close relationship with an employee, which led to AIG withdrawing a lucrative job offer. This follows previous incidents where Neal faced repercussions for failing to disclose relationships with subordinates at QBE Insurance Group Ltd.
The probe by Lloyd's was initiated after new information surfaced, building on an earlier independent fact-finding review commissioned by Chairman Sir Charles Roxburgh in October. That initial review aimed to ensure the corporation's processes were robust and aligned with regulatory expectations, as it found internal processes had not been fully adhered to regarding a prior matter.
The Wall Street Journal reported that AIG rescinded Neal's appointment as president after learning of Lloyd's investigation. Neal had been set to join AIG in December with a potential pay package of $17.2 million, including roughly $5 million in salary and bonuses for his first year, a target annual equity award of $5 million, a Day 1 restricted-stock grant of $4.5 million, and a $2.7 million cash bonus.
This is not Neal's first controversy regarding undisclosed relationships. While CEO of QBE, his 2016 bonus was docked by more than A$550,000 ($354,000) for not disclosing a relationship with a subordinate. Bloomberg also reported that this same subordinate later replaced Neal's previous assistant, whom he had married.
Neal served as CEO of Lloyd's from 2018 until earlier this year, taking over when the company was struggling to turn a profit post-Brexit. He is credited with bringing the firm back to profitability within a year, despite a 2019 Bloomberg Businessweek article exposing widespread sexual harassment at Lloyd's during his tenure.
