Norfolk Southern’s CEO Alan Shaw is below investigation for potential moral lapses, the railroad confirmed Monday.
A spokeswoman for the Atlanta-based railroad that’s considered one of North America’s six largest declined to supply any extra particulars concerning the nature of the allegations towards Shaw, who was promoted to the highest job within the spring of 2022 after many years at Norfolk Southern.
The Wall Road Journal reported that Shaw is predicted to step down as quickly as this week due to an alleged relationship with an worker, citing individuals aware of the matter. The Norfolk Southern board has tapped an outdoor regulation agency to steer the probe.
Shaw has been below super stress over the previous 18 months. First, he needed to cope with the worst railroad catastrophe prior to now decade after a Norfolk Southern practice derailed, spilled hazardous chemical compounds and caught fireplace in East Palestine, Ohio, prompting evacuations in February 2023. Then this yr, Shaw needed to struggle to maintain his job after activist investor Ancora Holdings nominated a full slate of board members in a bid to take management of the railroad and reform its operations, beginning with firing Shaw.
Ancora declined to touch upon the investigation Monday. Three of its nominees did win seats on the railroad’s board, however that wasn’t sufficient to provide it management.
The railroad’s board mentioned late Sunday that it had employed an outdoor regulation agency to research the allegations towards Shaw that his conduct could also be “inconsistent with the company’s code of ethics and company policy.”
Norfolk Southern is among the largest railroads with operations all all through the Japanese United States.