Norfolk Southern Alan Shaw axed as CEO after inappropriate employee relationship revealed

The chief executive officer of Norfolk Southern, one of America's leading freight carriers, has been fired after an ethics investigation found he engaged in an inappropriate relationship with a member of the rail business' legal team, the company announced Thursday.

Norfolk Southern's board of directors, in a unanimous decision announced Wednesday, said they had immediately terminated prescient and CEO Alan Shaw after "he violated company policies by engaging in a consensual relationship" with the company's legal chief."

"Shaw's departure is unrelated to the company's performance, financial reporting and results of operations," the Atlanta-based company wrote in a news release.

The board determined Shaw engaged in a consensual with Chief Legal Officer and Executive Vice President of Corporate Affairs Nabanita Nag.

Effective immediately, Nag was also fired in connection with the preliminary findings of the board's ongoing investigation, the release continues.

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Who is Norfolk Southern's new CEO?

Also in a unanimous vote, the company appointed Mark R. George, the company's executive vice president and CFO, as president and CEO effective immediately and said he will also join the Norfolk Southern Board.

"The board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders," Norfolk Southern Board Chairman Claude Mongeau said in the statement. "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."

'I look forward to my continued partnership'

The company, created in 1827, operates in 22 states, according to its website.

"I am honored to take on this role and lead Norfolk Southern," George said in the release. "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."

In connection with George's appointment, Norfolk Southern said Jason A. Zampi will serve as acting CFO.

The 2023 East Palestine, Ohio derailment

Last year, on Feb. 3, one of Norfolks' trains derailed in East Palestine, Ohio near the Pennsylvania border.

Residents initially watched the fires from the crash and were later evacuated as officials feared a potential hazardous chemical explosion, and they executed the vent and burn.

National Transportation Safety Board officials have said an overheated bearing on one of the railcars likely caused the crash, but questions remained about whether that could have been prevented and whether officials made the right choice to burn off the vinyl chloride.

In June, the NTSB recommended Norfolk Southern revise its incident report about the derailment to reflect the vent and burn of vinyl chloride were not necessary.

Natalie Neysa Alund is a senior reporter for USA TODAY. Reach her at [email protected] and follow her on X @nataliealund.