Norfolk Southern (NSC.N) has launched an investigation into its Chief Executive, Alan Shaw, amid allegations of potential misconduct. The company revealed on Sunday that its audit committee, in collaboration with an external law firm, is conducting an independent inquiry into the accusations. According to reports, Shaw is alleged to have been involved in an inappropriate workplace relationship. Shaw has not yet responded to requests for comment regarding the ongoing investigation.
This development follows a recent attempt by activist investor Ancora to shake up Norfolk Southern’s leadership. In May, Ancora secured three seats on the company’s board but was unsuccessful in its push to remove Shaw as CEO. The hedge fund had proposed replacing Shaw with Jim Barber, a former Chief Operating Officer at UPS, and suggested that Jamie Boychuk take over as the company’s Chief Operating Officer. Ancora argued that new leadership was necessary to enhance Norfolk Southern’s financial and operational performance and vowed to hold the company accountable for any future accidents or performance shortfalls.
Shaw took the helm at Norfolk Southern in May 2022, succeeding former CEO Jim Squires. Under Shaw’s leadership, the company has been scrutinized by investors for its performance. In the second quarter of this year, Norfolk Southern reported $3 billion in operating revenue, a 2% increase from the previous year but slightly below analysts’ expectations of $3.04 billion.
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