<p>Jamie Kelter Davis / Bloomberg via Getty Images</p>

Jamie Kelter Davis / Bloomberg via Getty Images

KEY TAKEAWAYS

  • Norfolk Southern fired CEO Alan Shaw over a relationship with the freight railroad’s legal chief.
  • The company said Shaw had been fired because it found he broke company policies “by engaging in a consensual relationship” with Chief Legal Officer Nabanita Nag, who also has been let go.
  • Shaw, who was terminated “for cause, effective immediately,” will be succeeded by CFO Mark George. 

Norfolk Southern (NSC) has fired Chief Executive Officer (CEO) Alan Shaw over a relationship with the freight railroad’s top legal officer.

The company had been investigating allegations of misconduct against Shaw, and said Wednesday he had been fired because it found he broke company policies “by engaging in a consensual relationship” with Chief Legal Officer Nabanita Nag, who also has been let go.

Shaw Will Be Succeeded By CFO Mark George

Shaw, who was terminated “for cause, effective immediately,” will be succeeded by Chief Financial Officer (CFO) Mark George. Nag also was terminated from her other roles as executive vice president corporate affairs and corporate secretary.

Shaw, who joined Norfolk Southern in 1994, worked his way up to marketing chief before taking charge as CEO in May 2022. But the company was involved in some controversies under his watch.

In April, Norfolk Southern announced a $600 million settlement to class-action litigation over a February 2023 train derailment in East Palestine, Ohio. And in July, the company was accused by the U.S. Department of Justice (DOJ) of illegally delaying Amtrak trains along a route from New York City to New Orleans.

Norfolk Southern shares slipped 1% to $250.86 soon after markets opened Thursday. They are up 6% this year.

Read the original article on Investopedia.