John Neal’s opportunity for a multimillion-dollar AIG role collapsed fast after an investigation into an alleged relationship surfaced, sparking shock across the industry.
John Neal was on track to land one of the biggest jobs in the insurance world, but everything unraveled almost overnight. Lloyd’s of London, where he served as CEO until earlier this year, confirmed Wednesday that it has been looking into his conduct since last month. On the same day, The Wall Street Journal reported that AIG pulled its job offer after learning about the probe, which focused on a relationship he allegedly had with an employee at Lloyd’s.
It wasn’t the first time his personal relationships caused trouble. When Neal ran QBE Insurance Group Ltd. in Australia, the board cut his 2016 bonus by more than A$550,000 after he didn’t disclose a relationship with a subordinate. Bloomberg previously reported the woman involved had replaced Neal’s former assistant, whom he married.
AIG declined to comment, and Neal didn’t reply to messages.
The quick about-face shows how tricky workplace relationships have become for executives. Several CEOs across different industries have lost their jobs for similar reasons, including leaders at Nestlé SA, Kohl’s Corp., and Astronomer. One CEO even resigned after he was caught on a stadium kiss cam at a Coldplay concert with a top executive.
It also highlights how even massive companies can be blindsided during high-level hiring. Neal had already been headhunted, vetted, and lined up for millions in compensation before everything stalled. Ian Hargreaves of Quillon Law told Bloomberg, “Workplace culture has become one of the biggest risk factors in the financial sector.” He added that many companies have rewritten rules around relationships, and some are close to full bans. “With that level of scrutiny, the idea that this latest issue slipped through the gaps is surprising.”
Neal was set to receive roughly $17.2 million at AIG, including about $5 million in his first-year salary and bonuses, $5 million in annual equity awards, a $4.5 million restricted-stock grant, and a $2.7 million cash bonus.
His career began in 1986 as a trainee at Lloyd’s before he moved through the ranks, ran Ensign, and later became CEO of QBE. But QBE struggled under his leadership, returning only about 1 percent annually to shareholders while its peers delivered around 21 percent. He also acknowledged he failed to disclose a relationship with his assistant, which led to a bonus cut.
Neal became CEO of Lloyd’s in 2018 as the company worked to recover after Brexit and push back against a damaging 2019 Bloomberg Businessweek report about widespread harassment. “This is not the Lloyd’s that I want to be part of,” he said at the time, committing to major reforms, including lifetime bans and a whistleblower hotline.
His departure from Lloyd’s was announced in January. He then accepted a top role at Aon before AIG swooped in with a bigger offer. But rumors began circulating again, prompting Lloyd’s Chairman Charles Roxburgh to order an independent review.
Inga Beale, who led Lloyd’s before Neal, said she was disappointed to hear of the investigation. “I thought we had made a lot of progress and these sorts of things were not going to be happening in this day and age.”
On Friday, AIG said it reached a “mutual agreement” with Neal that he would not join the company after all. The news raised questions about AIG’s vetting process, especially since Neal was set to take over duties previously held by David McElroy, who had been charged with multiple sexual assault counts last year.
James Berkeley, an adviser to insurance executives, said AIG shareholders expected stronger due diligence. Still, he wasn’t shocked that things fell apart. Given Neal’s track record, he said, “my only surprise is that we are surprised.”
