US Class 1 freight railway Norfolk Southern (NS) announced on September 11 the decision by the company’s board of directors to terminate the employment of president and CEO, Mr Alan Shaw, with immediate effect.
The preliminary findings of an ongoing investigation determined that Shaw violated company policy by engaging in a consensual relationship with a colleague, Ms Nabanita Nag, who has been dismissed from her role as executive vice-president, corporate affairs, chief legal officer and corporate secretary.
NS says that Shaw's departure is unrelated to the company's performance, financial reporting and operating results.
In a statement issued on September 8, NS acknowledged media reports that the board had opened an investigation into allegations that Shaw had engaged in conduct that was inconsistent with company policy and the NS code of ethics. This independent investigation has been conducted by a law firm retained by the board’s audit committee.
Formerly executive vice-president and chief marketing officer (CMO) at NS, Shaw took up the post of president and CEO in May 2022 following the retirement of Mr Jim Squires. Shaw was targeted by activist investor Ancora Holdings earlier this year, which failed in its attempt to take control of the NS board and replace him.
Shaw has been replaced by Mr Mark George, formerly executive vice-president and chief financial officer (CFO) at NS. The railway’s chief operating officer (COO), Mr John Orr, who won Ancora’s backing, was previously tipped as a successor to Shaw.
Following George's appointment as CEO, Mr Jason Zampi will serve as acting CFO. Mr Jason Morris will serve as acting corporate secretary following Nag’s dismissal.
“The board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders,” says NS board chairman, Mr Claude Mongeau
“Mark has played an integral role in our recent progress and brings decades of financial experience and strong operational expertise.”
