AIG to Pay John Neal $2.7 Million to Cover Previous Firm’s Bonus

American International Group Inc. will hand a multimillion-dollar payout to insurance executive John Neal, even as the executive’s employment ended before he joined the firm.

The insurer will pay Neal $2.7 million to compensate for “foregone incentives at his former employer,” the company said in a filing Friday.

AIG withdrew its employment offer to Neal, who had been set to join the company as president in December, after learning that the executive was being investigated at his former employer, Lloyd’s of London, the Wall Street Journal reported earlier this week.

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