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"Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "
Assuming these are two women I'd suggest Steve just shuts the F up, has a quiet word with Director to inform them she's shutting the F up. Let Brian dig his/her own hole.
This will require back bone which permies often lack, but if she's putting up with you, going by the word on the street, she does have a spine.
This is called "rising above it" or "being a grown-up".
Should this tactic lead Steve to troublesome official actions like warning or potential disciplinary crap she should sue the bejeezus out of everyone, including you.
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