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Railroad company Norfolk Southern ousted CEO Alan Shaw after an internal probe uncovered his relationship with the company's top lawyer, the company said in a Wednesday statement.
An internal investigation into Shaw uncovered his consensual relationship with the company's chief legal officer, Nabanita Nag. Norfolk Southern said that both people were fired.
The company said earlier this month it had started investigating Shaw for violating unspecified company policy.
Shaw's departure comes just over two years into his tenure as CEO. His leadership was already under pressure following a series of challenges, including two train derailments in Ohio and Alabama last year.
"Shaw's departure is unrelated to the company's performance, financial reporting and results of operations," said the company in the statement.
Nag joined Norfolk Southern in 2020 as general counsel. In 2022, she became senior vice president and, later, corporate secretary. At the time of the investigation, Nag oversaw departments including government relations, communications, and compliance, CNBC reported.
Shaw will be succeeded by Mark George, the company's chief financial officer, the company said in the statement.
George had served as CFO for nearly five years and played a key role in the company's efforts to fend off a recent activist investor campaign led by Ancora Holdings Group. The group had advocated for Shaw's resignation following the derailments.
Nag will be replaced by Jason Morris, who will take over her former role as corporate secretary, the company said in the statement.
Norfolk Southern chairman Claude Mongeau said in the statement that he was confident in George's leadership.
Shaw joins several high-profile company leaders, including Bernard Looney, former CEO of BP, and Jeff Zucker, former CNN chief, who lost their positions after failing to disclose personal relationships with their employees, Business Insider reported last year.
Shaw and Nag did not respond to requests for comments sent by BI outside business hours. Norfolk Southern declined further comment.
