QBE CEO relationship with personal assistant costs him A$0.5m
QBE group CEO John Neal has lost over A$550,000 ($422.500) in pay due to a delay in notifying his board that he was involved in a relationship with his personal assistant, the company confirmed to Intelligent Insurer.
Neal’s performance would have earned him a short-term incentive (STI) of A$2.7 million, based on his performance against his balanced scorecard.
In QBE’s summary of remuneration outcomes included in its 2016 annual report, the board stated that his performance had been well regarded.
However, both parties agreed that some recent “personal decisions” by the CEO have been inconsistent with the board’s expectations.
QBE employees are expected to disclose to their manager any close personal relationship that could potentially cause a conflict of interested, as laid out in its code of conduct.
The board had since decided that his 2016 STI will be reduced by 20 percent, adjusting it to A$2.2 million, or 50.2 percent of maximum opportunity.
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