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Key Takeaways
- Norfolk Southern said Sunday that the railroad company is investigating misconduct allegations against its CEO Alan Shaw.
- The company said it is working with outside legal partners to determine whether Shaw did anything “inconsistent” with its code of ethics.
- Norfolk Southern did not specify what allegations it was investigating, but CNBC reported Shaw was accused of engaging in an inappropriate workplace relationship.
Norfolk Southern (NSC) said Sunday that it is investigating allegations of misconduct against CEO Alan Shaw, and is working with outside legal counsel to determine whether Shaw did anything “inconsistent” with the company’s code of ethics.
The railroad freight company did not specify what allegations it was investigating, but CNBC reported Sunday that Shaw was accused of engaging in an inappropriate workplace relationship, citing people familiar with the matter.
Investigation Comes After Proxy Battle
Shaw took over the top job at Norfolk Southern in 2022 after first joining the company in 1994, working in a number of positions from a cost systems analyst to CMO before taking the CEO position.
During his tenure, the company has dealt with a derailment in East Palestine, Ohio that cost well over $1 billion, accusations from the Department of Justice that Norfolk Southern has broken the law by delaying Amtrak trains, and a proxy fight with activist investor firm Ancora Alternatives.
Ancora unsuccessfully attempted to get Shaw fired earlier this year over concerns of “financial underperformance” and the company’s safety issues. However, the firm managed to get three of its candidates elected to Norfolk Southern’s 13-seat board in May.
Norfolk Southern shares were up 0.9% at $252.34 in early trading Monday, and have gained close to 7% since the start of the year.