Norfolk Southern fires CEO after uncovering relationship with manager

The company announced earlier this month that it had launched an investigation into Shaw for violating unspecified company policies.

Shaw's resignation came just two years into his tenure as CEO, with his leadership already under pressure following a series of challenges, including two train derailments in Ohio and Alabama last year.

“Shaw's departure is unrelated to the company's performance, financial reporting or results of operations,” the company said in a statement.

Nag joined Norfolk Southern in 2020 as general counsel. She became senior vice president in 2022 and later corporate secretary. At the time of the investigation, Nag oversaw departments such as government relations, communications and compliance, CNBC reported.

Shaw's successor will be Mark George, the company's chief financial officer, the company said in a statement.

George served as the company's CFO for nearly five years and played a key role in the company's efforts to fend off a recent campaign by activist investors led by Ancora Holdings Group, which had pushed for Shaw's resignation following the gaffes.

Nag will be replaced by Jason Morris, who will assume her former role as company secretary, the company said in a statement.

Norfolk Southern Chairman Claude Mongeau said in the statement he had confidence in George's leadership.

As Business Insider reported last year, Shaw's colleagues join the ranks of several high-ranking corporate leaders, including Bernard Looney, former CEO of BP, and Jeff Zucker, former CNN chief, who lost their jobs for failing to disclose personal relationships with their employees.

Shaw and Nag did not respond to BI's requests for comment outside of business hours. Norfolk Southern declined further comment.