Norfolk Southern Managing Director Alan Shaw is being investigated for possible ethical violations, the railway company confirmed on Monday.
A spokeswoman for the Atlanta-based railroad, certainly one of the six largest in North America, declined to supply further details concerning the nature of the allegations against Shaw. promoted to the highest job in spring 2022 after many years at Norfolk Southern.
The Wall Street Journal reported that Shaw is predicted to resign this week over allegations he had a relationship with a female worker, citing people accustomed to the matter. Norfolk Southern’s board has hired an outdoor law firm to steer the investigation.
Shaw has been under enormous pressure over the past 18 months. First, he needed to cope with the worst Railway disaster within the last decade after a Norfolk Southern train derailsspilled dangerous chemicals and caught fire in East Palestine, Ohio, Trigger evacuations in February 2023. Then Shaw needed to fight for his job this yr after activist investor Ancora Holdings nominated A complete series of board members are said to be attempting to take control of the railway company and reform its operations. Shaw is the primary to be fired.
Ancora declined to comment on the investigation on Monday. Three of his candidates have won seats on the board of the railway company, but that was not enough to offer it control.
The railroad company’s board of directors said late Sunday that it had hired an outdoor law firm to research allegations against Shaw, which suggested his conduct can have been “contrary to the company’s code of conduct and corporate policy.”
Norfolk Southern is certainly one of the biggest railroad corporations with operations throughout the eastern United States.
