Norfolk Southern, the Atlanta-based railroad company, announced Wednesday that it had fired its chief executive Alan Shaw, saying he had engaged in a consensual relationship with a subordinate in violation of company policies. His termination was a unanimous decision by the board.
By Andrew Jeong
“Shaw’s departure is unrelated to the company’s performance, financial reporting and results of operations,” Norfolk Southern said in a news release.
He will be replaced by Mark George, previously the railroad’s chief financial officer.
A company spokeswoman said she could not comment further than what Norfolk Southern had already announced.
Shaw’s ouster follows a tumultuous period for the railroad. Less than a year after he was named chief executive, Shaw oversaw the fallout resulting from the disastrous derailment of a Norfolk Southern train near the town of East Palestine, Ohio, on Feb. 3, 2023. The crash caused a large fire that resulted in toxic chemicals being released into the air.
Norfolk Southern reached a $310 million settlement with the federal government in May to resolve a lawsuit over the railroad’s discharge of toxic substances, as well as a $600 million settlement in April to resolve class-action claims made by residents and businesses affected by the derailment. The company also agreed to pay for the area’s water monitoring for the next decade and offer a community health program.
Norfolk Southern said in July that it had spent more than $1.7 billion in expenses related to the Ohio train crash.
Shaw received $13.4 million in salary, stocks and other compensation last year, according to a company proxy statement, up from almost $9.8 million in 2022, when he was named chief executive.
Shaw and Nag could not be immediately reached for comment.
