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Norfolk Southern railroad says its CEO Alan Shaw is under investigation for alleged ethical lapses
By: Josh Funk | AP
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ATLANTA (AP) — Norfolk Southern’s CEO Alan Shaw is under investigation for potential ethical lapses, the railroad confirmed Monday.
Shaw has been under tremendous pressure over the past 18 months. First, he had to deal with the worst railroad disaster in the past decade after a Norfolk Southern train derailed, spilled hazardous chemicals and caught fire in East Palestine, Ohio, prompting evacuations in February 2023. Then this year, Shaw had to fight to keep his job after activist investor Ancora Holdings nominated a full slate of board members in a bid to take control of the railroad and reform its operations, starting with firing Shaw.
Ancora declined to comment on the investigation Monday. Three of its nominees did win seats on the railroad’s board, but that wasn’t enough to give it control.
The railroad’s board said late Sunday that it had hired an outside law firm to investigate the allegations against Shaw that his conduct may be “inconsistent with the company’s code of ethics and company policy.”
Norfolk Southern is one of the largest railroads with operations all throughout the Eastern United States.