#NorfolkSouthern #CEOInvestigation #CorporateGovernance
Norfolk Southern CEO Alan Shaw Under Investigation for Alleged Workplace Relationship
The board of directors at Norfolk Southern ($NSC) is currently investigating CEO Alan Shaw over allegations of an inappropriate workplace relationship. Shaw, who has been at the helm since 2022, has faced significant challenges during his tenure, including a major rail derailment incident and a contentious proxy battle.
The investigation, which is still in its early stages, may not necessarily uncover any wrongdoing. The company is working with external legal advisors to facilitate the inquiry. Despite attempts to reach him, Shaw did not respond to requests for comment via phone calls and text messages. Several board members, including chair Claude Mongeau, also did not respond to requests for comments.
This development comes on the heels of significant changes within Norfolk Southern's board. Earlier this year, activist investor Ancora aimed to remove Shaw due to his management of the East Palestine derailment, the underperformance of the company's stock, and what Ancora deemed an ineffective operational strategy. Although Ancora was unsuccessful in ousting Shaw, shareholders did elect three of its nominees to the board, with approximately 36% voting against Shaw's re-election.
If Shaw were to resign, COO John Orr or CFO Mark George would likely step in as interim replacements. Orr, who joined the company during the proxy struggle, has focused on improving operations and is a well-regarded railroad executive. Mark George has served as CFO for about five years, transitioning from the HVAC manufacturer Carrier. The company may also consider Same Fahmy, who oversaw the precision-scheduled railroading program at the former Kansas City Southern.
Original Article: https://www.cnbc.com/2024/09/08/norfolk-southern-nsc-alan-shaw-workplace-relationship.html
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