Norfolk Southern Corporation (NSC) has initiated an investigation into allegations of misconduct against its CEO, Alan Shaw. The investigation, conducted by an independent law firm hired by the company’s Audit Committee, stems from reports of an inappropriate workplace relationship involving Shaw.
The company has stated its commitment to upholding high ethical standards for all employees and that it takes allegations of misconduct seriously. Norfolk Southern’s Code of Conduct outlines a process for investigating such claims, including an anonymous Ethics & Compliance Hotline for reporting concerns.
This investigation comes on the heels of a May shareholder vote where Shaw was re-elected despite pressure from activist investor Ancora for a management shakeup. Ancora had criticized Norfolk Southern’s performance and its response to a train derailment in Ohio, advocating for executive changes, including the removal of Shaw. While Ancora successfully secured three seats on the board, their attempt to remove Shaw was unsuccessful. The investor group had proposed replacing Shaw with former UPS COO Jim Barber and appointing Jamie Boychuk as COO.
Following the news of the investigation, NSC shares closed down 1.09% at $250.01 on Friday. The investigation is ongoing, and the company has stated that it will not comment further until its completion.
