Alan Shaw, CEO, Norfolk Southern
Scott Mlyn | CNBC
Norfolk Southern’s board is inspecting allegations that CEO Alan Shaw engaged in an inappropriate office relationship, in accordance with three folks aware of the matter.
The probe is in its early phases, and it’s attainable that no misconduct could also be uncovered. The corporate is working with outdoors authorized advisors on the probe, two of the folks mentioned.
Shaw didn’t return cellphone calls or textual content messages requesting remark. A number of administrators, together with the chair, former Canadian Nationwide Railway CEO Claude Mongeau, additionally didn’t return requests for remark.
As well as, a number of spokespeople for the corporate additionally didn’t instantly return requests for remark.
Norfolk Southern’s board has undergone dramatic change over the previous couple of months.
An activist investor earlier this yr sought to oust Shaw from the highest job on the railroad, over his dealing with of the poisonous East Palestine derailment, the poor efficiency of Norfolk Southern’s inventory and what the activist described as a flawed working technique.
Activist Ancora didn’t handle to fireside Shaw, though shareholders did elect three of its candidates to the board, and roughly 36% of shareholders voted towards Shaw’s re-election. A spokesperson for Ancora didn’t return a request for remark.
Shaw has been CEO since 2022. Have been Shaw to step down, the 2 likeliest inner candidates to switch him on an interim foundation could be COO John Orr or CFO Mark George.
Orr joined the corporate within the midst of the proxy struggle and has spent a big period of time working within the discipline to show across the firm’s operations. A longtime and revered railroad operator, he was beforehand an govt at Canadian Pacific Kansas Metropolis, however has confronted allegations of misconduct that Ancora resurfaced throughout its marketing campaign. On the time, Norfolk Southern defended Orr’s observe file and accused the agency of attempting to distract from the {qualifications} of its personal govt candidates.
George has been Norfolk Southern’s CFO for roughly 5 years, becoming a member of the railroad from HVAC maker Provider.
The corporate may additionally look to faucet board member Sameh Fahmy, who was beforehand Orr’s boss and was most just lately in control of the previous Kansas Metropolis Southern’s precision-scheduled railroading program.
WATCH: Norfolk Southern CEO Alan Shaw on earnings, East Palestine
