Norfolk Southern negotiating CEO's exit, looks for interim chief, sources say
Law firm investigating allegations Shaw had relationship with direct report
Shaw discussing exit terms, including severance -sources
Potential interim CEOs include CFO, COO and directors -sources
By Svea Herbst-Bayliss
NEW YORK, Sept 11 (Reuters) -Norfolk Southern NSC.N is negotiating CEO Alan Shaw's exit, and the board is considering interim replacements, including the current chief financial officer, after finding the executive had a relationship with a subordinate, three sources familiar with the matter said on Wednesday.
The railway's board, with the help of a law firm, has been probing allegations that Shaw had a relationship with a direct report, violating the railway's ethics policy.
Shaw could not be reached for comment, while Norfolk Southern declined to comment.
The sources spoke on the condition of anonymity to discuss sensitive personnel matters.
Executives and lawyers are currently discussing terms of a potential exit package for Shaw, including severance, two of the sources said.
Shaw has been with the company for decades and was promoted to the top job in 2022. He led the company during a disastrous 2023 derailment in East Palestine, Ohio that is expected to cost the company more than $1 billion to settle claims.
The investigation into Shaw's conduct comes months after the CEO survived a bitter proxy contest with activist hedge fund Ancora Holdings that saw investors vote in three new directors to the company's 13-member board.
Mark George, Norfolk Southern's chief financial officer who had been in the running for the top job when Shaw got it, is one of the possible candidates to become interim CEO, one of the sources said.
Another potential candidate is John Orr, the company's chief operating officer. Orr joined Norfolk Southern in March after engineering the turnaround of Canadian Pacific Kansas City's CP.TO Mexico operations, the source said.
The board might also consider Richard Anderson, who was appointed to the board this year and previously ran Delta Air Lines DAL.N and passenger railroad Amtrak, one of the sources said.
Claude Mongeau, executive chair of the board who has been a director since 2019 and has considerable railway experience, could be another candidate, the source said.
The men could not be reached for comment.
Reporting by Svea Herbst-Bayliss; Editing by Jamie Freed
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
