Ex-insurance CEO failed to disclose close relationship with woman he promoted: reports

Lloyd’s of London said former CEO John Neal failed to disclose a close personal relationship with a subordinate he promoted — conduct the insurance giant said damaged its interests and fell far below the standards expected of its top executive.The centuries-old marketplace said its investigation found Neal’s relationship with former chief corporate affairs officer Rebekah Clement — that was her real job title — was “sufficiently close during their employment at Lloyd’s that it could be viewed as creating a perceived conflict of interest.”But the probe found “no conclusive evidence” that Neal and Clement had engaged in a romantic relationship while working at Lloyd’s, or that the process used to appoint her was improper, according to the Financial Times.The findings cap months of scrutiny that blew up Neal’s planned move to insurance giant AIG.The Wall Street Journal previously reported that Lloyd’s was investigating an alleged affair between Neal and Clement, along with employee complaints that she received preferential treatment after Neal promoted her to a newly created post — ironic title and all — reporting directly to him.Neal, who ran Lloyd’s for more than six years, was just two weeks away from starting as president of Manhattan-based AIG when the insurer abruptly announced in November that he would no longer join the company.Lloyd’s said neither Neal nor Clement disclosed the close relationship, depriving the company of the chance to address the perceived conflict.Following the probe, Lloyd’s said Neal’s conduct had been “detrimental” to its interests and “fell significantly below the standards of judgment, transparency and accountability expected of a Lloyd’s chief executive.”The investigation reportedly involved nearly 40 interviews and found Neal failed to respond adequately when colleagues raised concerns about the relationship, according to Reuters and other reports published Wednesday.Investigators also e...