Norfolk Southern Investigating Misconduct Allegations Against CEO Alan Shaw
Key Takeaways
- Norfolk Southern is investigating misconduct allegations against CEO Alan Shaw.
- The company is working with outside legal partners to determine if Shaw violated its code of ethics.
- Allegations include engaging in an inappropriate workplace relationship.
Norfolk Southern (NSC) announced on Sunday that it is conducting an investigation into allegations of misconduct against its CEO, Alan Shaw. The company is collaborating with external legal counsel to determine whether Shaw’s actions are inconsistent with the company’s code of ethics.
The specific allegations being investigated have not been disclosed by Norfolk Southern. However, according to CNBC, Shaw has been accused of engaging in an inappropriate workplace relationship, as reported by sources familiar with the matter.
Investigation Comes After Proxy Battle
Alan Shaw assumed the position of CEO at Norfolk Southern in 2022 after joining the company in 1994. Throughout his tenure, Shaw has faced various challenges, including a costly derailment in East Palestine, Ohio, which incurred expenses exceeding $1 billion. Additionally, the Department of Justice accused Norfolk Southern of unlawfully delaying Amtrak trains. The company also engaged in a proxy fight with activist investor firm Ancora Alternatives.
Ancora Alternatives attempted to oust Shaw earlier this year due to concerns regarding financial underperformance and safety issues. Although the firm failed to remove Shaw from his position, it successfully secured the election of three of its candidates to Norfolk Southern’s 13-seat board in May.
Despite these challenges, Norfolk Southern shares have performed well, with a 7% increase since the beginning of the year. As of early trading on Monday, the company’s shares were up 0.9% at $252.34.
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