John Neal was poised to become the second-in-command at American Institute Group (AIG) this week. This move followed his six-year leadership tenure at Lloyd’s of London.

Neal had resigned from his CEO position at Lloyd’s, the world’s largest insurance marketplace, in January, paving the way for his anticipated role as AIG’s president.

However, as reported by The Wall Street Journal, Neal and AIG reached a mutual decision to nullify the agreement after it came to light that he was previously scrutinized for an alleged affair with a subordinate.

But according to The Wall Street Journal, Neal and the firm mutually agreed to back out of the contract after it was discovered that he was investigated over the alleged affair.

The initial Lloyd’s probe was centered around Neal and then-director of corporate affairs, Rebekah Clement, according to the report.

Neal promoted Clement to the newly created role in 2023, meaning she reported directly to him. She helped to oversee government policy, media relations and sat on the Lloyd’s executive committee as part of the promotion. 

She had previously worked for the prime minister of New Zealand, and departed her role at Lloyd’s in May.

The CEO who replaced Neal never replaced her job, according to the publication. 

John Neal (pictured) was due to take over as second-in-command at American Institute Group this week after a six-year stint at the helm of Lloyd’s of London

The initial Lloyds probe was centered around Neal and then-director of corporate affairs, Rebekah Clement (pictured)

Several employees allegedly raised concerns over potentially preferential treatment Clement received in the job, as well as a decision to hire Neal’s daughter within the communications team.

A source close to Clement said she maintains her appointment was above board and followed due process.

A spokeswoman for Lloyd’s said an independent review took place in October and found the firm’s ‘internal processes had not been fully adhered to in respect of a prior matter.’

Lloyd’s officials had reportedly spoken with AIG before his appointment was made public in July, and according to one source, his new employer was assured there was no evidence of impropriety.

Separately, Neal’s bonus was cut at his prior employer to Lloyd’s, Australian insurance group QBE, after he failed to disclose a romantic relationship with his then executive assistant.

‘I think what was different in my personal situation was that I was the CEO,’ he told Financial News in 2020 about the incident. 

‘And I felt that I had addressed what was a difficult situation internally as early as I could.’ 

Neal was expected to earn up to $17 million in his first year at AIG, but he and the firm reached a ‘mutual agreement’ that he would ‘no longer join the company due to personal reasons.’

Neal was expected to earn up to $17 million in his first year at AIG, but he and the firm reached a ‘mutual agreement’ that he would ‘no longer join the company due to personal reasons’

The decision has reportedly sparked uproar among staff who are concerned about how the deal passed so many checks and balances, only to fall through at the final hurdle. 

It also comes on the back of the departure of David McElroy last year, who left the company due to ‘personal reasons’ only to later be charged with four counts of felony sexual assault.

He has pleaded not guilty and ‘categorically denies the chargers’, which relate to an alleged incident at an AIG retreat in Vermont. A trial is scheduled for 2026.