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Norfolk Southern\u2019s\u00a0CEO Alan Shaw<\/a>\u00a0is under investigation for potential ethical lapses, the railroad confirmed Monday.<\/p>\n A spokeswoman for the Atlanta-based railroad that is one of North America\u2019s six largest declined to offer any additional details about the nature of the allegations against Shaw, who was\u00a0promoted<\/a>\u00a0to the top job in the spring of 2022 after decades at Norfolk Southern. <\/p>\n The Wall Street Journal<\/em> reported<\/a> that Shaw is expected to step down as soon as this week because of an alleged relationship with an employee, citing people familiar with the matter. The Norfolk Southern board has tapped an outside law firm to lead the probe. <\/p>\n Shaw has been under tremendous pressure over the past 18 months. First, he had to deal with the worst\u00a0railroad disaster<\/a>\u00a0in the past decade after a\u00a0Norfolk Southern train derailed<\/a>, spilled hazardous chemicals and caught fire in East Palestine, Ohio,\u00a0prompting evacuations<\/a>\u00a0in February 2023. Then this year, Shaw had to fight to keep his job after activist investor Ancora Holdings\u00a0nominated<\/a>\u00a0a full slate of board members in a bid to take control of the railroad and reform its operations, starting with firing Shaw.<\/p>\n Ancora declined to comment on the investigation Monday. Three of its nominees\u00a0did win seats<\/a>\u00a0on the railroad\u2019s board, but that wasn\u2019t enough to give it control. <\/p>\n The railroad\u2019s board said late Sunday that it had hired an outside law firm to investigate the allegations against Shaw that his conduct may be \u201cinconsistent with the company\u2019s code of ethics and company policy.\u201d<\/p>\n Norfolk Southern is one of the largest railroads with operations all throughout the Eastern United States.<\/p>\n<\/div>\n\nRecommended reading:<\/strong>
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