Norfolk Southern CEO to step down amid probe over alleged inappropriate relationship: report

Norfolk Southern’s CEO Alan Shaw is expected to step down from his role amid an investigation into allegations of potential misconduct, the Wall Street Journal reported on Monday, citing people familiar with the matter..

CNBC had first reported on Sunday that Shaw engaged in an inappropriate workplace relationship.

Norfolk Southern did not immediately respond to a Reuters request for comment.

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In his tenure, Shaw has been under the crossfire multiple times – from the derailment in East Palestine, Ohio in 2023 to a recent boardroom battle with Ancora Holdings – and questions were raised on whether he should continue as the company’s CEO.

Shares of the company rose 2.7% in aftermarket trade.

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In May, activist investor Ancora won three board seats at the railroad operator but failed to oust the railway’s chief executive.

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Ancora had proposed investors push Alan Shaw off the board and elect Jim Barber, a former chief operating officer at UPS, so that he could eventually replace Shaw as CEO. They also proposed Jamie Boychuk to become the chief operating officer.

Shaw was appointed CEO in May 2022, replacing Jim Squires.

The hedge fund argued new blood was needed to improve financial and operational metrics and said it would continue to hold the company accountable for any future railway accidents or underperformance.

The Atlanta-based company reported operating revenue of $3 billion in the second quarter, up 2% from last year, narrowly missing analysts’ estimates of $3.04 billion.

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