"Shaw violated company policies"
Norfolk Southern has fired its CEO and chief legal officer over an alleged “inappropriate workplace relationship”.
Chief Legal Officer Nabanita Nag was dismissed along with CEO Alan Shaw after an investigation into claims they were involved in a consensual relationship.
The alleged relationship was in violation of the US-based railroad company’s policy.
In a press release, the company said the move “comes in connection with preliminary findings from an ongoing investigation that determined Shaw violated company policies by engaging in a consensual relationship with the company’s chief legal officer”.
It added: “Shaw’s departure is unrelated to the company’s performance, financial reporting and results of operations.”
The company’s board then named CFO Mark George as President and CEO, effective immediately.
Mr George joined Norfolk Southern in 2019 from United Technologies Corporation, where he was Global Chief Financial Officer for its Otis Elevator Co. and Carrier Corp. subsidiaries.
The company’s chairman Claude Mongeau said:
“The Board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders.
“Mark has played an integral role in our recent progress and brings decades of financial experience and strong operational expertise.
“He embodies our corporate values and is a champion of our safety culture.
“In close partnership with our accomplished COO, John Orr, they will continue to improve NS’ operating performance and close the margin gap with peers.”
Jason M Morris will be the acting Corporate Secretary, a role that Ms Nag had held.
According to her LinkedIn profile, Ms Nag is a “seasoned leader” who works with three Fortune 300 public companies. She formerly worked at Goldman Sachs.
She was appointed Chief Legal Officer in 2022, having joined Norfolk Southern in 2020 as General Counsel.
Ms Nag earned a bachelor’s degree in Government and English from Georgetown University and a Juris Doctor (JD) from New York University School of Law.
On September 8, 2024, Norfolk Southern said its board had launched an investigation into allegations of conduct by Mr Shaw that is “inconsistent with the company’s Code of Ethics and company policy”.
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.”
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