Check out whats clicking on FoxBusiness.com.
Norfolk Southern CEO Alan Shaw could be on his way out after the railroad’s board launched an investigation into allegations that he engaged in an inappropriate relationship with another employee, according to multiple reports.
The Wall Street Journal reported Monday that Shaw is expected to depart Norfolk Southern by the end of the week, after the board announced its probe into Shaw’s alleged misconduct over the weekend.
Norfolk Southern Chief Executive Alan Shaw testifies on the East Palestine, Ohio train derailment before a U.S. Senate Environment and Public Works Committee hearing on Capitol Hill, in Washington, U.S., March 9, 2023. (Mary F. Calvert/Reuters / Reuters Photos)
The Journal confirmed details from an earlier report by CNBC that the investigation was launched over allegations of an inappropriate workplace relationship.
When contacted by FOX Business, Norfolk Southern declined to comment beyond its statement about the investigation, which disclosed that company had hired an outside law firm to look into allegations that Shaw potentially violated the company’s code of ethics.
NORFOLK SOUTHERN CEO RECEIVED MAJOR PAY BOOST DESPITE EAST PALESTINE DERAILMENT
Shaw has worked at Norfolk Southern for thirty years, rising through the ranks before taking over as CEO in 2022.Â
This video screenshot released by the U.S. National Transportation Safety Board (NTSB) shows the site of a derailed freight train in East Palestine, Ohio, the United States. (NTSB/Handout via Xinhua / Getty Images)
The board, of which Shaw is a member, supported his leadership through the disastrous 2023 derailment in East Palestine, Ohio, and defended him against an effort by activist investors to replace the railroad’s entire leadership team earlier this year.
EXPECT MORE CEO EXITS OVER UNDISCLOSED PERSONAL RELATIONSHIPS WITH COLLEAGUES, EXPERT SAYS
A number of high-profile corporate leaders have lost their jobs in recent years for failing to fully disclose personal relationships with colleagues.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NSC | NORFOLK SOUTHERN CORP. | 257.46 | +0.53 | +0.21% |
BP CEO Bernard Looney and Cboe Global Markets Chairman and CEO Edward Tilly both resigned from decades-long careers at their respective companies last year after boardroom investigations discovered they had not been entirely forthright about their relationships with fellow employees.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
McDonald’s ousted former CEO Steve Easterbook in 2019 for engaging in a “consensual relationship with an employee,” and former Intel CEO Brian Krzanich stepped down in 2018 after the semiconductor manufacturer found out he had a “past relationship with an Intel employee.”