Norfolk Southern fired CEO after discovering relationship with Exec

The company said earlier this month that it had begun investigating Shaw for violating unspecified company policy.

Shaw’s departure comes just over two years into his tenure as CEO. Its leadership was already under pressure following a series of challenges, including two train derailments in Ohio and Alabama last year.

“Shaw’s departure is unrelated to the company’s performance, financial reporting and results of operations,” the company said in the statement.

Nag joined Norfolk Southern in 2020 as general counsel. In 2022, he became senior vice president and later corporate secretary. At the time of the investigation, Nag oversaw departments including government relations, communications and compliance, CNBC reported.

Shaw will be succeeded by Mark George, the company’s chief financial officer, the company said in a statement.

George served as CFO for nearly five years and played a key role in the company’s efforts to fend off a recent activist investor campaign led by Ancora Holdings Group. The group had called for Shaw’s resignation following the derailments.

Nag will be replaced by Jason Morris, who will take over her former role as corporate secretary, the company said in a statement.

Norfolk Southern President Claude Mongeau said in the statement that he has confidence in George’s leadership.

Shaw joins several high-profile company leaders, including former BP CEO Bernard Looney and former CNN chief Jeff Zucker, who have lost their jobs after failing to disclose personal relationships with their employees, Business Insider reported last year.

Shaw and Nag did not respond to BI’s after-hours requests for comment. Norfolk Southern declined further comment.