International Courant
Alan Shaw, CEO, Norfolk Southern
Scott Mlyn | CNBC
Norfolk South The board is investigating allegations that CEO Alan Shaw engaged in an inappropriate working relationship, in accordance with three individuals accustomed to the matter.
The investigation is in its early levels and it’s doable that no wrongdoing will probably be discovered. The corporate is working with outdoors authorized counsel on the investigation, two of the individuals mentioned.
Shaw didn’t reply to cellphone calls or textual content messages looking for remark. A number of administrators, together with the chairman, former CEO of Canadian Nationwide Railway Claude Mongeauadditionally didn’t reply to requests for remark.
Moreover, a number of firm spokespeople didn’t instantly reply to requests for remark.
Norfolk Southern’s board has undergone important adjustments in current months.
An activist investor earlier this yr tried to oust Shaw from his prime job on the railroad over his dealing with of the poisonous East Palestine derailment, the poor efficiency of Norfolk Southern shares and what the activist described as a flawed operational technique.
Activist Ancora did not oust Shaw, though shareholders elected three of her candidates to the board and about 36% of shareholders voted in opposition to Shaw’s re-election. An Ancora spokesman didn’t reply to a request for remark.
Shaw has been CEO since 2022. Ought to Shaw step down, COO John Orr and CFO Mark George are the 2 most certainly inner candidates to switch him on an interim foundation.
Orr joined the corporate within the midst of the proxy battle and has spent quite a lot of time within the discipline turning the corporate’s operations round. A longtime and revered railroad operator, he was beforehand an govt at Canadian Pacific Kansas Metropolishowever confronted allegations of misconduct that Ancora revived throughout his marketing campaign. Norfolk Southern defended Orr’s document on the time and accused the corporate of attempting to distract from the {qualifications} of its personal board candidates.
George has been CFO of Norfolk Southern for about 5 years, coming from the HVAC tools producer. Service.
The corporate may additionally usher in board member Sameh Fahmy, who beforehand served as Orr’s boss and most not too long ago led the previous Kansas Metropolis Southern’s meticulously deliberate rail program.
WATCH: Norfolk Southern CEO Alan Shaw on revenue, East Palestine
Norfolk Southern Investigates CEO Alan Shaw Over Working Relationship
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