Norfolk Southern’s board is currently investigating allegations against CEO Alan Shaw regarding an inappropriate workplace relationship. The probe is in its early stages, and outside legal advisors are assisting with the investigation. Shaw and multiple directors, including the chair, have not commented on the matter. The board of Norfolk Southern has recently undergone significant changes, with an activist investor attempting to remove Shaw from his position earlier this year.
Despite the activist investor’s efforts, Shaw was not removed from his role as CEO. However, three of the activist’s candidates were elected to the board, and a significant portion of shareholders voted against Shaw’s re-election. If Shaw were to step down, potential internal candidates to replace him on an interim basis include COO John Orr and CFO Mark George. Orr has a background in railroad operations and has faced allegations of misconduct in the past, while George has been Norfolk Southern’s CFO for approximately five years.
In addition to Orr and George, board member Sameh Fahmy could also be considered as a potential interim CEO. Fahmy previously oversaw the precision-scheduled railroading program at Kansas City Southern. Shaw has been CEO of Norfolk Southern since 2022 and has faced challenges related to the company’s performance, stock price, and operating strategy. The exact nature of the allegations against Shaw regarding the inappropriate workplace relationship have not been disclosed.
The investigation into Shaw’s alleged inappropriate workplace relationship is ongoing, and it is unclear what the final outcome will be. Norfolk Southern’s board is taking the matter seriously and working with outside legal advisors to conduct a thorough review. The company has not made any official statements regarding the investigation, and key individuals involved, including Shaw and board members, have not provided comments. As the investigation progresses, more information may come to light regarding the allegations and their potential impact on Norfolk Southern’s leadership and operations.
