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.”
The Wall Street Journal reported this afternoon that Shaw is expected to leave the company by the end of the week, citing people familiar with the matter. 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.
If Shaw departs, it is unclear who might be named as an interim chief executive. Current board members with CEO experience include Claude Mongeau, who once led Canadian National; Richard Anderson, the former Delta Air Lines and Amtrak chief executive who was elected to the board this year; and Thomas Kelleher, who was chairman and CEO of Morgan Stanley Bank, N.A.
Note: Updated at 3:35 p.m. Central with references to Wall Street Journal report and potential interim CEO candidates.
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