Norfolk Southern Corp. has fired CEO Alan Shaw and Chief Legal Officer Nabanita Nag following an internal investigation that revealed the two had a consensual relationship in violation of company policy. The Atlanta-based transportation giant announced the decision Wednesday evening, promoting Chief Financial Officer Mark R. George to the role of CEO, effective immediately.

Norfolk Southern Fires CEO : New Leadership

Mark R. George, who joined Norfolk Southern as CFO in 2019, was tapped to lead the company based on his extensive experience, including his time at United Technologies Co., now part of RTX Corp. Company chair Claude Mongeau expressed confidence in George's leadership, noting his integral role in recent company progress and his commitment to safety.

“Mark embodies our corporate values and is a champion of our safety culture," Mongeau said in a statement.

CEO Ouster and Company Investigation

Shaw’s departure follows an investigation launched just days ago after the company hired a law firm to look into conduct that allegedly violated its code of ethics. Shaw, who had served as CEO since May 2022 after taking over from James A. Squires, was Norfolk Southern’s Chief Marketing Officer before his promotion. Nag had been with the company since 2020 and became Chief Legal Officer in March 2022.

Neither Shaw nor Nag could be reached for comment on the decision.

Norfolk Southern Fires CEO  : Corporate Turmoil and Recent Challenges

The leadership shake-up comes at a turbulent time for Norfolk Southern. The company fended off a board takeover attempt in May by investor group Ancora Catalyst Institutional LP, which had criticized Shaw’s leadership, citing poor customer delivery times, derailments, and share price underperformance. Ancora successfully secured three seats on Norfolk Southern’s 13-member board.

Adding to the company’s struggles, Norfolk Southern faced scrutiny after a train carrying hazardous materials derailed in East Palestine, Ohio, in early 2023. The incident led to large-scale contamination, forcing the evacuation of nearly 2,000 residents. Norfolk Southern has since faced significant backlash and ongoing litigation, including a proposed $600 million settlement with affected residents and businesses.