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Insurance giant AIG has reportedly taken back the hire of a senior executive over allegations he carried on an affair with a subordinate at his previous job.
John Neal was just days away from assuming the presidency of the Manhattan-based conglomerate after a six-year stint as CEO of Lloyd’s of London, according to The Wall Street Journal.
Industry insiders were left stunned when the company pulled its offer at the last minute after learning Neal was involved in a close relationship with Rebekah Clement, the newspaper reported.
In a Nov. 14 securities filing, AIG said it reached mutual agreement with Neal that he would “no longer be joining the company due to personal circumstances.”
Clement, who headed the corporate affairs unit at Lloyd’s of London, was promoted by Neal to the newly created position in 2023, according to the report.
This isn’t the first time that Neal was allegedly involved in a workplace romance with a subordinate.
Before taking over at Lloyd’s, Neal served as CEO of QBE Insurance Group.
In 2017, the firm cut his bonus for failing to disclose a romantic relationship with his executive assistant.
Clement, who once worked for the prime minister of New Zealand and whose portfolio included government policy and media relations, reported directly to Neal, The Journal reported.
Lloyd’s employees believed Neal had a close relationship with Clement and noted that they frequently traveled together.
Employees reportedly complained to management about what they perceived as Neal’s preferential treatment of Clement.
Workers were also unhappy after learning that Neal arranged for his daughter to be named to a position in the company’s communications department, The Journal reported.
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Clement, who has insisted that her own hiring followed a proper process, left Lloyd’s of London in May. After her departure, Neal’s successor as CEO didn’t fill her position, according to the Journal.
Prior to Neal’s job offer from AIG, Lloyd’s reopened its inquiry into his conduct, people familiar with the matter told the Journal.
It is unclear what prompted the renewed inquiry.
The incident is an embarrassing one for AIG given that Neal was just days away from taking over as the company’s No. 2.
According to The Journal, industry insiders were perplexed at how AIG management failed to properly vet a candidate for one of its most important posts.
Last month, Lloyd’s commissioned an independent review after it became “aware of market speculation concerning possible historic breaches of policy.”
According to The Journal, the review found “internal processes had not been fully adhered to in respect of a prior matter.”
In light of newly surfaced information, the company launched an investigation which was handled by a law firm.
Before AIG announced Neal’s hiring back in July, the firm sent inquiries to Lloyd’s, which assured decisionmakers at the New York-based company that it wasn’t aware of any wrongdoing, a person familiar with the matter told The Journal.
The unit Neal was supposed to run had previously been led by David McElroy, who left last year for “personal reasons.”
McElroy was later charged with three felony counts of sexual assault and lewd conduct tied to an AIG retreat in Vermont.
The charges stem from a night at an AIG client conference and fundraiser at the Lodge at Spruce Peak in Stowe, Vt., last year where a woman says she woke up on the floor of her hotel room and realized McElroy was sexually assaulting her.
According to the police affidavit, the alleged victim had no memory leading up to the moment she woke up and said the situation felt “scary and awkward.”
The affidavit says McElroy twice ordered the woman double shots of tequila, moved with her to an executive lounge, and later returned with a bottle of wine before the alleged assault.
The detective’s filing details how the woman encountered McElroy multiple times that night at bars during the event, including a private gathering.
McElroy told police he believed the encounter was consensual and claimed he helped the woman retrieve a room key at the front desk before they spent the night in her room.
He pleaded not guilty, and his lawyer says he “categorically denies the charges.”
A jury trial is set for next year.
An AIG spokesperson declined to comment. Neal and Clement were not immediately available for comment.
The Post has reached out to McElroy’s attorney seeking comment.
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