Norfolk Southern Ousts CEO Alan Shaw, Citing Relationship With Chief Legal Officer

The Relationship

Norfolk Southern announced last week that it had ousted CEO Alan Shaw, effective immediately.

Norfolk Southern was tipped off last summer about a relationship between Shaw and the company’s chief legal officer. The company hired a law firm to investigate.

The probe found that the relationship violated company policy and created an appearance of impropriety, according to the company’s statement.

Other Investigations

He will remain an employee of the company while assisting in the ongoing investigation.

The company declined to say if other executives are being investigated, citing the ongoing probe.

Enforcement Action

The Securities and Exchange Commission (SEC) is looking into Norfolk Southern’s handling of the matter, according to the sources. It’s unclear whether the probe will lead to an enforcement action.

Response

Norfolk Southern said in its statement that James A. Squires, the company’s current lead independent director, will become non-executive chairman of the board.

The company said that it has appointed Cindy Sanborn, its current executive vice president and chief operating officer, to the additional role of interim CEO.