(NewsNation) — Norfolk Southern has fired CEO Alan Shaw for having an inappropriate relationship with his subordinate, the company’s chief legal officer, the railroad announced Wednesday.
Shaw’s firing comes just days after the company’s board said it was investigating him over alleged misconduct.
Norfolk Southern said Shaw “violated company policies” by engaging in a “consensual relationship” with Nabanita Nag, the company’s executive vice president of corporate affairs, chief legal officer and corporate secretary.
Norfolk Southern sets salary and bonus for newly promoted CEO after firing Alan Shaw
The Norfolk Southern Board of Directors voted unanimously to terminate both Shaw and Nag.
Shaw’s departure comes after a tumultuous couple of years in charge of the Atlanta-based railroad. Since taking over in May 2022, he’s been criticized for the company’s handling of the toxic East Palestine, Ohio, derailment and faced a hostile takeover attempt from an activist investor.
“Shaw’s departure is unrelated to the company’s performance, financial reporting and results of operations,” the company said in a statement Wednesday.
Norfolk Southern results complicated by derailment insurance payments, proxy fight and productivity
Last year, Shaw received a base salary of $1.1 million and total compensation topping $13.4 million.
Norfolk Southern said Shaw is ineligible for severance and will have to forfeit any outstanding stock awards because he was fired for cause, according to an SEC filing.
The company promoted CFO Mark George to replace Shaw.
