American International Group pulled John Neal’s appointment as the insurer’s second-in-command after it discovered his previous employer launched an investigation into an alleged workplace affair, according to people familiar with the matter.
The insurance behemoth’s last-minute reversal prompted a hasty reshuffle of senior AIG AIG -0.08%decrease; red down pointing triangle executives and stunned many in the industry. Insurance insiders asked how an appointment of an heir apparent could fall apart days before he was set to enter the building.
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