ROUGH TENURE

Norfolk Southern CEO Reportedly Expected to Depart Amid Affair Rumors

Alan Shaw was named CEO in 2022—just in time for the toxic train derailment in early 2023 and an activist investor campaign against his company earlier this year.

Things have gone from bad to worse for Norfolk Southern’s embattled CEO Alan Shaw. The railroad’s board opened a probe into him late Sunday over an alleged affair with an employee, the Wall Street Journal reported Monday, citing people familiar with the matter. The Journal reported that Shaw could depart the company as soon as this week. Details on the alleged relationship—and the fate of the other employee involved—was not immediately released. Shaw took over the rail giant in 2022, just in time to see it embroiled in national controversy after a train derailed with toxic materials on board in early 2023. Amid the fallout of that incident, which became a political attack point for Republicans against Joe Biden for his perceived lack of response to the disaster, an activist investor campaign was launched against Shaw over the ordeal. The leadership coup ultimately didn’t pan out, but Norfolk Southern found itself on the hook for $600 million in settlement cash that was distributed to residents of East Palestine, Ohio, where the derailment occurred.