Norfolk Southern says CEO is under investigation for alleged ethical lapses

Norfolk Southern CEO Alan Shaw is being investigated for possible ethical lapses, the railroad confirmed Monday.

A spokeswoman for the Atlanta-based railroad, one of North America’s six largest, declined to provide further details about the nature of the allegations against Shaw, who was promoted to the top job in the spring of 2022 after decades at Norfolk Southern.

Shaw has been under tremendous pressure over the past 18 months. First, it had to deal with the worst rail disaster in a decade, after a Norfolk Southern train derailed, spilled dangerous chemicals and caught fire in East Palestine, Ohio, prompting evacuations in February 2023. Then this year, Shaw had to fight to keep his job after activist investor Ancora Holdings nominated a full slate of board members in a bid to seize control of the railroad and reform its operations, beginning with Shaw’s dismissal.

The anchor declined to comment on the investigation Monday. Three of his nominees won seats on the railroad’s board, but that was not enough to give him control.

The railroad’s board of directors said late Sunday that it had hired an outside law firm to investigate allegations against Shaw that his conduct may be “inconsistent with the company’s code of ethics and policy.”

Norfolk Southern is one of the largest railroads with operations throughout the eastern United States.

Photo: Norfolk Southern Railroad CEO Alan Shaw in 2023 Atlanta. (AP Photo/John Bazemore, File)

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