ATLANTA – Norfolk Southern confirmed late Sunday night that its board has opened an investigation into allegations of conduct by CEO Alan Shaw that is “inconsistent with the company’s Code of Ethics and company policy.”
CNBC on Sunday afternoon first reported that the board was probing allegations that Shaw had an inappropriate workplace relationship, citing three unnamed people said to be familiar with the matter.
“Norfolk Southern holds all its team members to the highest standards. In line with the company’s Code of Conduct and company policy, allegations of misconduct are thoroughly investigated. The code also includes resources for employees to anonymously report concerns, including through the Ethics & Compliance Hotline,” the railroad said in a statement.
The board’s audit committee has hired a law firm to conduct the investigation. “To ensure a fair investigation, the company and the Board cannot comment further until the investigation is complete,” NS said.
Shaw, who became chief executive in 2022, maintained the backing of the NS board despite the fallout from the disastrous hazardous materials derailment in East Palestine, Ohio, in 2023, as well as during its proxy battle with activist investor Ancora Holdings this year.
This guy can’t seem to catch a break.
Innocent until proven guilty.
If Shaw is found to be complicit, then action should be taken.
However, this coming after East Palestine, a big board fight, a proxy issue with a hedge firm and his outspoken desire to increase safety, which rubbed some Class 1’s the wrong way……also makes me very wary as to the motives. Some unsavory conduct was also present when vested interests didn’t get their way.
Politics, even in the corporate world can get pretty nasty when money (lots of it) are involved.