Norfolk Southern CEO Alan Shaw has been terminated after the company’s board of directors determined he engaged in a consensual relationship with the company’s chief legal officer, Nabanita Nag. Nag will also be fired, according to the company.
The investigation into the relationship was first reported by CNBC. The company said Shaw was fired for cause and that George, the company’s finance chief, would replace him as CEO.
George has served as Norfolk Southern’s CFO for nearly five years and played a key role in fending off activist investor Ancora. He previously held senior finance roles at Otis Elevator and United Technologies.
Jason Zampi as interim CFO and Jason Morris as interim corporate secretary.
Norfolk Southern CEO Alan Shaw has been dismissed from his position following an investigation into his personal conduct. The company’s board of directors determined that Shaw engaged in a consensual relationship with the company’s chief legal officer, Nabanita Nag, both of whom have been terminated.
Shaw’s dismissal comes after a tumultuous tenure as CEO, marked by challenges such as contentious labor negotiations, a major derailment in East Palestine, Ohio, and a proxy fight with an activist shareholder group. Despite surviving the proxy fight, Shaw was ultimately unable to withstand the investigation into his personal behavior.
The company’s statement did not specify the exact nature of the consensual relationship between Shaw and Nag. However, the dismissal suggests that the relationship violated company policies or standards of conduct.
Executive Changes
Norfolk Southern has announced the termination of Nabanita Nag from her roles as executive vice president of corporate affairs, chief legal officer, and corporate secretary. This decision is based on the preliminary findings of an ongoing investigation into her relationship with former CEO Alan Shaw.
The company has appointed Mark George, the CFO, as the new CEO. The board of directors has expressed full confidence in George’s ability to lead the company and deliver on its commitments.
While Shaw’s 30-year tenure with Norfolk Southern was not acknowledged in the company’s statement, he received support from some unions for his efforts to improve railroad safety following the East Palestine derailment. However, the National Transportation Safety Board criticized Norfolk Southern’s actions in the aftermath of the accident, citing a lack of transparency and proper communication with first responders.
Despite these challenges, Shaw was re-elected to the board earlier this year with the support of 64% of shareholders. However, his relationship with Nag ultimately led to his dismissal.
