ATLANTA — The Norfolk Southern board of directors is investigating allegations that CEO Alan Shaw had an inappropriate workplace relationship, CNBC reported Sunday, citing three unnamed people said to be familiar with the matter.
The investigation is in its early stages, the network reported, and it is possible that no misconduct will be uncovered.
Norfolk Southern confirmed late Sunday night that its board has opened an investigation into allegations of conduct by Shaw that is “inconsistent with the company’s Code of Ethics and company policy.”
In statement the railroad said: “Norfolk Southern holds all its team members to the highest standards. In line with the company’s Code of Conduct and company policy, allegations of misconduct are thoroughly investigated. The code also includes resources for employees to anonymously report concerns, including through the Ethics & Compliance Hotline.”
The board’s audit committee has hired a law firm to conduct the investigation. “To ensure a fair investigation, the company and the Board cannot comment further until the investigation is complete,” NS said.
Shaw, who became chief executive in 2022, maintained the backing of the NS board despite the disastrous hazardous materials derailment in East Palestine, Ohio, in 2023, as well as during its battle with activist investor Ancora Holdings this year.
This is a developing story.