Norfolk Southern, a major US railroad company, announced it has launched an investigation into allegations of potential misconduct involving its Chief Executive Officer, Alan Shaw.
According to a statement released late Sunday, the company’s audit committee is working with an external law firm to conduct an independent investigation into the claims. These allegations, as reported by CNBC, involve Shaw’s participation in an inappropriate workplace relationship.
The probe is still in its early stages, and it remains uncertain whether any misconduct will be confirmed. Shaw, who has been CEO since May 2022, has yet to respond to requests for comment on the matter. Norfolk Southern’s board of directors, chaired by former Canadian National Railway CEO Claude Mongeau, is overseeing the investigation.
This development comes after a period of shareholder dissatisfaction and activist investor involvement at Norfolk Southern. Earlier this year, the activist hedge fund Ancora attempted to remove Shaw from his position following criticism over his handling of the East Palestine derailment and the company’s overall performance. While Ancora did not succeed in ousting Shaw, it managed to secure three board seats during its campaign. Approximately 36% of shareholders voted against Shaw’s re-election, reflecting ongoing discontent.
Norfolk Southern, based in Atlanta, operates across 22 states and is one of the few remaining Class 1 railroads in the United States. The company reported second-quarter revenues of $3 billion, slightly missing analysts’ estimates.
Should Shaw step down, two internal candidates — Chief Operating Officer John Orr and Chief Financial Officer Mark George — are seen as potential interim replacements. Both executives bring significant experience in the rail industry, although Orr himself faced previous allegations of misconduct, which Norfolk Southern defended during Ancora’s campaign.
Reuters, CNBC, and BNN Bloomberg contributed to this report.