The Board of Directors for Norfolk Southern Corp. unanimously voted on Wednesday to oust Alan Shaw as the railroad company’s president and CEO, effective immediately.
The board also voted to fill Shaw’s position with Mark R. George, who will also join the Norfolk Southern board. George most recently has served as executive vice president and chief financial officer of Norfolk Southern since 2019.
The board fired Shaw for “engaging in a consensual relationship with the company’s chief legal officer,” who was also terminated, according to a Norfolk Southern statement released Wednesday.
Reportedly, Shaw was dismissed “for cause,” which could prevent him from collecting a hefty exit package, according to the company, which on Sunday said it had started an investigation that involved Shaw.
Preliminary findings from that ongoing investigation determined that Shaw violated company policies by engaging in a consensual relationship with coworker Nabanita Nag, who also has been terminated, effective immediately, from her roles as executive vice president of corporate affairs, chief legal officer, and corporate secretary at Norfolk Southern.
Nag has been replaced by Jason Morris, who will serve as acting corporate secretary.
At the same time, the company noted that Shaw’s departure is unrelated to Norfolk Southern’s performance, financial reporting, and results of operations.
Shaw, who has worked for Norfolk Southern for over 30 years, had been CEO for just more than two years in a tenure fraught with controversy.
For instance, Norfolk Southern experienced a tragic train derailment last February in East Palestine, Ohio, that released toxic materials into the surrounding environment and cost the company millions. The Class 1 railroad also earlier this year was involved in a proxy fight with activist shareholder group Ancora, which unsuccessfully tried to have Shaw removed.
Now, due to Shaw’s personal behavior, he has been replaced by George, who the board called “a seasoned executive” with over 35 years of professional experience spanning multiple global industries.
In George’s previous capacity, he oversaw the company’s Finance, Investor Relations, Sourcing, and Corporate Strategy teams.
“During his time at Norfolk Southern, Mark brought a strategic and business partnership mindset to the CFO office,” according to the company’s statement. “He has used his expertise across multiple industrial segments to help shape the company’s strategy and drive value for our shareholders.”
Claude Mongeau, chairman of the Norfolk Southern Board, said the board has full confidence in George and his ability to continue delivering on the company’s commitments to shareholders and other stakeholders.
“Mark has played an integral role in our recent progress and brings decades of financial experience and strong operational expertise. He embodies our corporate values and is a champion of our safety culture,” said Mongeau. “In close partnership with our accomplished COO, John Orr, they will continue to improve NS’ operating performance and close the margin gap with peers.”
George said in the statement that he’s “honored” to take over Shaw’s role and lead Norfolk Southern.
“I look forward to my continued partnership with John and the entire Thoroughbred team as we further our progress on optimizing operations and serving our customers, while creating a safe and satisfying workplace and delivering enhanced value for our employees, customers, shareholders, and communities,” George said.
In connection with George’s appointment as CEO, Norfolk Southern also announced that Jason Zampi will serve as acting CFO.