Norfolk Southern CEO Alan Shaw was fired by the railway company this week — not over last year’s toxic chemical spill, but an inappropriate relationship with an employee.
The company announced the news following an ethics investigation and a unanimous decision by the board of directors.
Shaw “violated company policies by engaging in a consensual relationship” with Nabanita Nag, the chief legal officer and executive vice president of corporate affairs, the board said in a news release. “Shaw’s departure is unrelated to the company’s performance, financial reporting and results of operations.”
Nag was also fired.
Mark R. George, the company’s executive VP and CFO, was promoted to president and CEO in another unanimous vote. He will also join the board.
The corporate shakeup comes roughly a year and a half after a Norfolk Southern freight train derailed in East Palestine, Ohio. The Feb. 2, 2023 incident led to a large fire, a spill of toxic materials and required a burn-off of hazardous chemicals to prevent an explosion.
A National Transportation Safety Board investigation found the crash was most likely caused by an overheated bearing on one of the railcars. The NTSB also determined the burn-off of vinyl chloride — which carried pollution to more than 15 other states — was not necessary and the company failed to properly inform public officials about the decision.
Norfolk Southern eventually removed more than 176,000 tons of contaminated soil and over 44 million gallons of tainted water from the surrounding area as part of the cleanup process.
In May of this year, the company reached a $310 million settlement with the Justice Department and Environmental Protection Agency.
