Norfolk Southern CEO Alan Shaw Dismissed for Consensual Relationship with Chief Legal Officer

Norfolk Southern CEO Alan Shaw has been terminated by the railroad’s board due to a consensual relationship with the company’s chief legal officer, Nabanita Nag, who was also dismissed. The company announced Shaw’s removal “for cause,” potentially disqualifying him from receiving a typical severance package.

The company had initially revealed Shaw was under investigation on Sunday. Shaw, who had led one of the nation’s largest freight railroads for just over two years, faced a turbulent tenure marked by contentious labor negotiations, a major derailment in East Palestine, Ohio, and a shareholder proxy fight that nearly resulted in his ouster.

Shaw’s tenure saw significant challenges, including a derailment in East Palestine that released toxic materials, health concerns among residents, and criticism from unions and regulatory bodies. Despite surviving a shareholder vote earlier this year, Shaw could not withstand the fallout from the investigation into his personal conduct.

The company has named CFO Mark George as the new CEO, with Chairman Claude Mongeau expressing confidence in George’s leadership. The statement did not include any acknowledgment of Shaw’s 30 years with the company or a comment from Shaw, who could not be reached for immediate comment.

During Shaw’s leadership, Norfolk Southern made notable strides in safety, receiving praise from Federal Railroad Administration Administrator Amit Bose for improvements made after the East Palestine derailment. However, the company faced severe criticism from the National Transportation Safety Board for its handling of the aftermath of the derailment, particularly regarding the controlled burn of toxic chemicals.

The NTSB found that Norfolk Southern’s response to the derailment, including the decision to burn vinyl chloride tank cars, was flawed and poorly communicated to first responders and public officials.