Norfolk Southern Fires CEO Alan Shaw for Inappropriate Relationship

Former CEO to Receive $7.5 Million Severance

Norfolk Southern has fired CEO Alan Shaw after an investigation found he engaged in an inappropriate relationship with an employee. The company's board of directors announced the decision on Tuesday, saying that Shaw had violated the company's code of conduct.

Shaw will receive a severance package worth $7.5 million, according to a regulatory filing. The package includes a lump sum payment of $3 million, as well as continued health benefits and life insurance coverage.

Investigation Finds Inappropriate Relationship

The company's investigation found that Shaw had engaged in an inappropriate relationship with a female employee. The relationship was consensual, but the company said it violated its code of conduct because Shaw was in a position of power over the employee.

The investigation also found that Shaw had used company resources to pursue the relationship, including providing the employee with a company car and a company-paid cell phone.

Board of Directors Votes to Terminate Shaw

The company's board of directors voted to terminate Shaw's employment on Tuesday. The board said in a statement that it had "lost confidence" in Shaw's ability to lead the company.

The board has appointed CFO Mark George to serve as interim CEO while it conducts a search for a permanent replacement.

Shaw Denies Wrongdoing

Shaw has denied any wrongdoing and said he is "deeply disappointed" by the board's decision to terminate his employment.

Shaw said in a statement that he "engaged in a consensual relationship with a woman who was not a subordinate" and that he "did not use company resources to pursue the relationship."

Norfolk Southern Faces Lawsuits

Norfolk Southern is facing a number of lawsuits related to the derailment of a train in East Palestine, Ohio, in February. The derailment caused a massive fire and the release of toxic chemicals into the air and water.

The lawsuits allege that Norfolk Southern was negligent in its operation of the train and that the company failed to properly respond to the derailment.