Norfolk Southern fires its CEO over relationship with another executive

By Mike Murphy

CFO Mark George to replace Alan Shaw after misconduct investigation

Railroad operator Norfolk Southern Corp. fired Chief Executive Alan Shaw on Wednesday, following an investigation into allegations of misconduct.

In a statement late Wednesday, Norfolk Southern's board said Mark George, the company's executive vice president and chief financial officer, will become president and CEO, effective immediately upon the board's unanimous decision to terminate Shaw "for cause."

Norfolk Southern (NSC) said preliminary findings of an investigation determined Shaw had violated company policies by having a consensual relationship with the company's chief legal officer, Nabanita Nag, who was also fired.

"The board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders," Claude Mongeau, chairman of Norfolk Southern's board, said in a statement. "He embodies our corporate values and is a champion of our safety culture."

George has served as Norfolk Southern's CFO since 2019. In conjunction with the move, Jason Zampi was named acting chief financial officer.

The investigation was first announced over the weekend, with the company saying it "holds all its team members to the highest standards."

Shaw had joined Norfolk Southern in 1994 and held various leadership positions until being named CEO in May 2022.

Earlier this year, the railroad reached a settlement totaling more than $300 million with the U.S. government over the catastrophic derailment in East Palestine, Ohio, in February 2023.

Norfolk Southern shares slipped slightly after hours Wednesday, after falling 1.4% during regular trading. The stock is up about 7.4% year to date, compared to the S&P 500's SPX 16.4% gain this year.

-Mike Murphy

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09-11-24 1942ET

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