Norfolk CEO Alan Shaw to be replaced by CFO over inappropriate relationship with legal chief

Sept. 12 (UPI) -- Norfolk Southern removed CEO Alan Shaw and legal head Nabanita Nag after a preliminary investigation found that they were involved in a relationship that violated company policy.

The railroad giant's board voted unanimously Wednesday to terminate Shaw and Nag from their roles and to appoint CFO Mark George as the new CEO effective immediately.

"This change in leadership comes in connection with preliminary findings from an ongoing investigation that determined Shaw violated company policies by engaging in a consensual relationship with the company's chief legal officer," Norfolk Southern said in a statement.

"Shaw's departure is unrelated to the company's performance, financial reporting, and results of operations."

Norfolk Southern said that Jason Zampi will replace George as chief financial officer in an acting role.

"I look forward to my continued partnership with [Chief Operating Officer John Orr] and the entire Thoroughbred team as we further our progress on optimizing operations and serving our customers while creating a safe and satisfying workplace and delivering enhanced value for our employees, customers, shareholders and communities," George said in a statement.

Nag had also served as executive vice president of corporate affairs and corporate secretary. Norfolk Southern said Jason Morris will currently replace Nag as corporate secretary.

George had served as the company's chief financial officer for nearly five years and held senior posts at Otis Elevator and United Technologies before that. He was a key player in Norfolk Southern fighting off activist investor Ancora.

Norfolk Southern announced on Sunday that it had opened an investigation into Shaw for "allegations of potential conduct" that was "inconsistent with the company's Code of Ethics and company policy."