Norfolk Southern Fires CEO Over Relationship with Top Lawyer

Railroad company Norfolk Southern took action by firing CEO Alan Shaw due to his undisclosed relationship with an employee. Shaw had a consensual relationship with Nabanita Nag, the company's corporate secretary. Mark George, the company's CFO, will step in as the new CEO.

Internal Probe Reveals CEO's Relationship

Norfolk Southern made the decision to oust CEO Alan Shaw after an internal investigation uncovered his relationship with the company's chief legal officer. The investigation revealed that Shaw and Nabanita Nag were involved in a consensual relationship, leading to the termination of both individuals.

Reasons Behind Shaw's Departure

The company had initiated an investigation earlier this month regarding Shaw's violation of unspecified company policies. Despite Shaw's departure just over two years into his CEO role, Norfolk Southern clarified that it was not related to the company's performance or financial standing.

New Leadership Announcements

Mark George, who has been serving as the company's CFO for nearly five years, will succeed Shaw as the new CEO. George played a significant role in the company's response to an activist investor campaign led by Ancora Holdings Group, advocating for Shaw's resignation post-train derailments.

Nabanita Nag, who held roles as general counsel and senior vice president at Norfolk Southern, will be replaced by Jason Morris as the corporate secretary.

Confidence in New Leadership

Norfolk Southern chairman Claude Mongeau expressed confidence in Mark George's ability to lead the company effectively in the wake of these changes.

Industry Trends and Precedents

Notably, Alan Shaw joins a list of high-profile company leaders, such as Bernard Looney of BP and Jeff Zucker of CNN, who lost their positions due to undisclosed personal relationships with employees. This trend was highlighted in a Business Insider report last year.

Both Shaw and Nag have not provided comments on the situation outside of business hours, while Norfolk Southern has chosen not to elaborate further on the matter.

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By: lwee@insider.com (Lian Kit Wee)
Title: Norfolk Southern Fires CEO Over Relationship with Top Lawyer
Sourced From: www.businessinsider.com/norfolk-southern-fired-ceo-after-uncovering-relationship-employee-alan-shaw-2024-9
Published Date: Thu, 12 Sep 2024 05:45:03 +0000