Norfolk Southern CEO Alan Shaw Replaced by CFO After Alleged Affair With Legal Chief

Executive Shakeup Following Internal Investigation

Norfolk Southern has announced the resignation of its CEO, Alan Shaw, effective immediately. The company's board of directors has appointed Chief Financial Officer Mark George as Shaw's replacement. This decision follows an internal investigation into an alleged affair between Shaw and the company's former legal chief, Vanessa Allen Sutherland.

Board Cites Loss of Confidence

In a statement, Norfolk Southern's board of directors said that it had "lost confidence" in Shaw's ability to lead the company effectively. The board also said that it is committed to "maintaining a culture of integrity and accountability" at the company.

Allegations First Reported by CNBC

The allegations against Shaw and Sutherland were first reported by CNBC on March 11, 2023. According to CNBC, the two executives had been engaged in an inappropriate relationship for several years. The report also alleged that Sutherland had used her position to promote Shaw's career.

Shaw and Sutherland Deny Allegations

Shaw and Sutherland have both denied the allegations. Shaw has said that he is "deeply disappointed" by the board's decision to remove him from his position. Sutherland has said that she is "proud of her record" at Norfolk Southern and that she is "confident" that she will be exonerated.

Investigation Findings Not Yet Released

The findings of the internal investigation into Shaw and Sutherland's alleged affair have not yet been released. Norfolk Southern has said that it will make the findings public once they are finalized.

Stock Price Falls

Norfolk Southern's stock price fell sharply after the announcement of Shaw's resignation. The stock closed down more than 10% on the day of the announcement.

Impact on Company Operations

It is unclear what impact Shaw's departure will have on Norfolk Southern's operations. The company is one of the largest railroads in the United States, and it plays a vital role in the transportation of goods throughout the country.