Norfolk Southern Investigation

Norfolk Southern announced on Sunday that it has launched an investigation into allegations of potential misconduct involving its CEO, Alan Shaw.

The company’s audit committee is collaborating with a law firm to carry out an independent inquiry into these allegations, which were initially reported by CNBC. Reports suggest that Shaw was involved in an inappropriate workplace relationship.

Shaw has not yet responded to requests for comment regarding the investigation.

In May, activist investor Ancora gained three board seats at Norfolk Southern but was unable to have Shaw removed. They advocated for Shaw’s replacement with Jim Barber, a former UPS COO, and proposed Jamie Boychuk for the COO position.

Shaw took over as CEO in May 2022, succeeding Jim Squires. Ancora believes that new leadership is essential for improving the company’s financial and operational performance and intends to hold Norfolk Southern accountable for future incidents or underperformance.

In Q2, the Atlanta-based company reported operating revenue of $3 billion, a 2% increase from the previous year, but slightly under the analysts’ forecast of $3.04 billion.