Norfolk Southern Fires CEO

Norfolk Southern has fired its CEO, Alan Shaw, saying he allegedly had a consensual, undisclosed relationship with an employee.

According to CBS News, Shaw engaged in a relationship with the company’s chief legal officer, Nabanita Nag, which violated its policies.

BREAKING – Norfolk Southern railroad says it has ousted its CEO for inappropriate relationship with an employee – AP

— Insider Paper (@TheInsiderPaper) September 11, 2024

“Shaw is out effective immediately and will be replaced by finance chief Mark George,” CNBC noted.

Married Norfolk Southern CEO Alan Shaw fired over ‘inappropriate’ relationship with employee https://t.co/BSr7KKUhfu pic.twitter.com/yQzuCXvAYQ

— New York Post (@nypost) September 12, 2024

CBS News reports:

Also fired was its chief legal officer, Nabanita Nag, the employee with whom Shaw was said to be involved, according to initial findings from an ongoing investigation disclosed Sunday by the company’s board of directors. The company said it had hired a law firm to oversee an independent probe into allegations Shaw engaged in behavior inconsistent with the company’s code of ethics and policy.

“Shaw’s departure is unrelated to the company’s performance, financial reporting and results of operations,” Norfolk Southern said in a Wednesday news release.

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Mark George, the railroad’s chief financial officer, is replacing Shaw as CEO, effective immediately.

Shaw in May survived a bid to oust him as CEO over complaints including his handling of last year’s toxic East Palestine, Ohio, train derailment and the poor performance of the company’s stock.

Norfolk Southern CEO let go with immediate effect from his $1.2 million per month job after uncovering affair with his own legal counsel.

The two picture here.

Was it worth it? $NSC $BNSF pic.twitter.com/VZKSInqtDz

— trader (@TicTocTick) September 12, 2024

Norfolk Southern CEO Alan Shaw fired for “engaging in a consensual relationship” with the railroad’s chief legal officer, who was also terminated https://t.co/IREmdgwR2u

— CNN Breaking News (@cnnbrk) September 11, 2024

Per CNBC:

CNBC first reported on the board probe Sunday, and followed with a report on Wednesday that Nag was a focus of the investigation. The company said Shaw had been fired for cause.

“I am honored to take on this role and lead Norfolk Southern,” George said in a press release. Shaw did not immediately respond to a request for comment.

George has served as Norfolk Southern’s CFO for nearly five years and was integral to the company’s efforts to stave off activist investor Ancora. He previously served for two decades in senior finance roles at Otis Elevator and United Technologies.

“The Board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders,” Chairman Claude Mongeau said in the statement.

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