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Norfolk Southern former Chief Executive Alan Shaw testifies during a Senate Commerce, Science and Transportation Committee hearing titled "Improving Rail Safety in Response to the East Palestine Derailment" in Washington, March 22, 2023.
Evelyn Hockstein | Reuters
Norfolk Southern CEO Alan Shaw is out effective immediately after the board determined he engaged in a consensual relationship with chief legal officer Nabanita Nag, the company announced Wednesday. He will be replaced by finance chief Mark George.
The company said Nag would be terminated as well, based on the board's preliminary investigation.
CNBC first reported on the board probe Sunday, and followed with a report on Wednesday that Nag was a focus of the investigation. The company said Shaw had been fired for cause.
"I am honored to take on this role and lead Norfolk Southern," George said in a press release. Shaw did not immediately respond to a request for comment.
George has served as Norfolk Southern's CFO for nearly five years and was integral to the company's efforts to stave off activist investor Ancora. He previously served for two decades in senior finance roles at Otis Elevator and United Technologies.
Norfolk Southern CFO Mark George, pictured here, prior to his taking the CEO role at the company
Courtesy: NSCORP
"The Board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders," Chairman Claude Mongeau said in the statement.
A representative for Ancora did not immediately respond to a request for comment.
The company announced that Jason Zampi would serve as interim CFO. Jason Morris, meanwhile, will serve as interim corporate secretary.
This is breaking news. Please check back for updates.
