The CEO of one of America's largest railroads has been shunted aside over what Norfolk Southern's board was a "consensual relationship with the company's chief legal officer." The company said Wednesday night that Alan Shaw was fired "for cause" following an ethics investigation, CNN reports. The chief legal officer, Nabanita Nag, was also fired. The company said Mark George, its chief financial officer, will replace Shaw, who had been CEO since May 2022.
"Shaw's departure is unrelated to the company's performance, financial reporting, and results of operations," the company said in a statement. The statement didn't thank Shaw for his 30 years with the company. The firing means he may be unable to collect a typical CEO exit package, including millions in severance pay, CNN notes. Last year, his pay totaled $13.4 million last year, up from $9.8 million the previous year, the New York Times reports.
Shaw was CEO when a Norfolk Southern train derailed in East Palestine, Ohio last year in what the AP calls "the worst railroad disaster in the last decade." He was praised for his efforts to improve safety after the disaster. Earlier this year, he survived a proxy fight with activist investor group Ancora, which wanted to replace him. Rail industry analyst Tony Hatch tells the Times that Shaw's supporters are disappointed with how his time at the top has ended. "How could he go through all this and do that?" he says. (More Norfolk Southern stories.)
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